Investment Scam Check: Is This Offer Legit?
Got an offer that promises big returns — a “trading” group, crypto bot, or a friend's “sure ball” investment? Tap what's true about it and see how many red flags it shows, and how its promised return compares with regulated options.
Red flags follow the patterns in SEC investor advisories. Benchmarks use PesoPilot's rate data (October 2026), checked against official sources twice a week. This tool can't prove an offer is safe.
Answer above to see the risk level.
The 3 checks that catch most scams
- License, not just registration. A company certificate only means the business exists. Taking investments from the public needs a separate SEC license or registration of the investment.
- SEC advisories. Search the company and its app or page name on the SEC website. The SEC publishes advisories against unauthorized investment schemes.
- The return. Regulated options pay about 5%–7.12% a year. An offer of several percent a month is a warning sign by itself.
Where to grow money instead
Start with an emergency fund in an insured digital bank, then grow it with MP2, T-bills, or regulated investments. The investment simulator shows what realistic returns add up to over time — and if you're offered a loan to “invest,” check its true cost first with the Loan True Cost Checker.
Frequently asked questions
How do I know if an investment is legit in the Philippines?
Check three things before you send money. Is the company allowed to offer investments — not just registered as a business? Selling investments to the public needs a license or registration from the SEC (banks and e-money are under the BSP, insurance under the Insurance Commission). Has the SEC issued an advisory against it? And is the promised return realistic next to regulated options like MP2, T-bills or a digital bank?
Is an SEC registration enough to prove an investment is legal?
No. A certificate of incorporation only means the company exists. It does not allow the company to solicit investments from the public. The SEC regularly warns that companies showing only their registration certificate are not authorized to take investments.
What is a realistic return?
Regulated, low-risk options pay single digits a year: a top digital bank about 5%, T-bills around 6%, and Pag-IBIG MP2 paid about 7% for 2025. Stock index funds can do better over many years but can also fall. Anything promising several percent a month — or to double your money in months — should be treated as a scam until proven otherwise.
What is the difference between a Ponzi and a pyramid scheme?
In a Ponzi scheme, "profits" paid to earlier investors come from newer investors’ money, not from a real business. In a pyramid scheme, you earn mainly by recruiting people who pay to join. Both collapse when new money slows down, and most members — especially those who joined late — lose what they put in.
I think I already invested in a scam. What should I do?
Stop sending money and do not recruit anyone to "unlock" a withdrawal. Save every receipt, chat, account number and screenshot. Report the scheme to the SEC’s Enforcement and Investor Protection Department, and online fraud to the PNP Anti-Cybercrime Group. Be wary of "recovery" services that ask for a fee to get your money back — that is a common second scam.
Educational tool only — not legal or investment advice, and not a finding that any specific company is or isn't a scam. Verify with the Securities and Exchange Commission and report suspected fraud to the SEC or the PNP Anti-Cybercrime Group.
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