Every Filipino wants to grow their money, but with investment scams on the rise, how can you tell what’s real and what’s a trap? Scammers prey on those seeking financial freedom, making it crucial to stay informed before investing.

Indeed, the fear of being scammed shouldn’t stop you from exploring investment opportunities altogether. Instead, you should aim to be well-informed in choosing legitimate investments so you can invest with confidence. At EastWest, we are committed to helping Filipinos grow their wealth safely and responsibly. With that in mind, we’ve compiled six tips to help you determine whether an investment product or opportunity is legitimate.

1. Is It SEC-Registered? Always Verify First!

The Securities and Exchange Commission (SEC) supervises and monitors companies offering investments in the Philippines. Their database provides potential investors like you with a reliable way to verify whether a company offering investment products is legitimate. Before investing, check if the company is registered with the SEC by visiting the agency’s website.

EastWest is an SEC-registered company, meaning our investment products are regulated, and our brokers are licensed to offer and manage them. By choosing us as your investment partner, you can rest assured that your investments are handled according to strict regulations by credible professionals with financial market expertise.

2. Check If the Investment Provider Offers a Legitimate Business Model

Genuine investments should be backed by actual business activities such as stock market trading, real estate investing, mutual funds, bonds, or manufacturing and selling products. If an investment opportunity relies solely on recruiting new investors—as is the case with Ponzi schemes—it is likely a scam.

Before committing to an investment, take the time to understand how your money will generate returns. For example, EastWest fixed-income investments are based on securities issued by governments, corporations, and other entities to raise funds. If you invest in fixed-income products like government securities, you can expect regular, predictable interest payments over a set period. Knowing the source of your earnings can give you confidence in your investment rather than leaving you uncertain about when or how your money will grow.

3. Beware of Unrealistic Promises

A good rule of thumb when investing is: If it sounds too good to be true, it probably is. If an investment promises extraordinarily high returns with zero risk, consider it a red flag. All investments come with risks. In fact, a credible company will assess your risk profile to ensure that you can choose an investment product that aligns with your risk tolerance.

At EastWest, we offer an online investor profiler quiz to help assess your risk tolerance and recommend suitable investment products. For instance, if you have a moderate risk profile, a Unit Investment Trust Fund (UITF) like the EastWest Peso Money Market Fund may be a good option, as it balances growth and security, allowing you to take on some risk while aiming for higher returns.

4. Avoid High-Pressure Sales Tactics

Scammers use fear and urgency to push you into bad decisions. Phrases like 'Limited slots left!' or 'Invest now before it’s too late!' are designed to force quick action. A legitimate investment firm will give you time to research, ask questions, and think before committing your money.

5. Check Online Reviews and Complaints

Before investing, research the experiences of past investors with the same company or product. The SEC regularly publishes scam warnings, so checking their advisories is a great starting point. You can also look for blog reviews, social media discussions, and customer feedback. If multiple people report issues like non-payment, missing funds, or blocked withdrawals, it’s best to steer clear.

6. Consult Financial Experts

If your own research isn’t enough to give you a clear picture of an investment opportunity, don’t hesitate to seek advice from registered financial advisors, bankers, or other trusted professionals. For EastWest Bank investment products, we encourage prospective investors to contact us so we can discuss your financial goals and recommend suitable investment options.

Investing can be a powerful way to grow your wealth, but staying vigilant and informed is crucial. Scammers often prey on emotions—whether by promising quick riches or creating a false sense of urgency. Protect your investments by choosing SEC-registered options with a proven track record. Explore EastWest’s investment products today and invest with confidence.