THE Securities and Exchange Commission (SEC) on Friday warned the public against sophisticated forms of online scams involving malicious application files and unauthorized investment schemes.
In an advisory through its Financing and Lending Companies Department, the SEC cautioned against installing unauthorized or suspicious apps, commonly known as APKs (Android Package Kits), which are often sent through links, messages, or even online meetings by individuals posing as representatives of legitimate institutions.
The scheme consists of instructions to download the apps not from official sources such as Google Play or the Apple App Store, allowing scammers access to mobile devices of potential victims.
Once installed, these malicious apps can access personal and financial information, intercept one-time passwords, and carry out unauthorized transactions, including obtaining loans without the account holder’s knowledge.
The SEC cited a case in which a victim’s device was compromised after installing an APK during an online meeting, enabling perpetrators to access multiple financial accounts and successfully secure a loan using stolen credentials.
Legitimate government agencies and financial institutions do not require the installation of apps from unofficial sources, the SEC said, as it reminded the public to refrain from sharing sensitive information such as passwords, personal identification numbers (PINs), and one-time passwords (OTPs).
The SEC has flagged a number of unauthorized investment schemes circulating online, including those operating under the names ECOCAPSULE, HTX, and TAGALOGIX AI.
ECOCAPSULE exhibits characteristics of a Ponzi scheme, a fraudulent investment scam that generates “returns” for earlier investors with money taken from later investors, rather than from actual business profits.
HTX, a cryptocurrency trading platform offering digital asset services, is unregistered and lacks the necessary authorization to operate or offer securities in the Philippines.
TAGALOGIX AI is likewise unregistered and unauthorized to offer or sell securities.
Entities offering investment opportunities must be duly registered and licensed, the SEC said, noting that individuals acting as promoters, recruiters, or endorsers of such schemes may face criminal liability, including fines of up to P5 million, or imprisonment of up to 21 years, or both.
The public is advised to report suspicious online financial offers to the Philippine National Police Anti-Cybercrime Group, the National Bureau of Investigation Cybercrime Division, and the Cybercrime Investigation and Coordinating Center.
