SEC Warns Against Recharging and Tasking Scam

To safeguard the public from deceptive schemes, the Securities and Exchange Commission (SEC) is alerting individuals to be cautious of the growing threat known as the “Recharging and Tasking Scam.” As technology advances, scammers are finding new ways to defraud people through fake e-commerce platforms, pretending to be trustworthy companies such as Amazon, Shopee, Lazada, and eBay.

What is a Recharging and Tasking Scam？

Recharging and Tasking Scams involve fraudsters enticing people online, claiming to offer online jobs through counterfeit e-commerce platforms.

How does it happen？

Scammers ask individuals to invest money in these schemes, promising commissions and rewards. The scammers often pretend to be affiliated with well-known companies like Amazon, Shopee, Lazada, eBay, and other e-commerce platforms. They urge potential investors to register and enroll on their platforms, where investors can select packages, levels, or VIP levels ranging from ₱100 to ₱50,000 and make payments or deposits (“recharge”). Investors are told they can earn commissions between 2% and 8%, along with invitation rewards ranging from ₱10,000 to ₱100,000, depending on the number of individuals they successfully invite or enroll.

However, it's a dishonest setup, similar to a Ponzi scheme, where new investors' money is used to pay fake profits to earlier investors.

Red Flags to Watch Out For

1. Unrealistic Promises: Be cautious if the scheme promises unusually high returns and significant invitation rewards.

2. Fake Job Offer: These scams often pose as online job opportunities. Verify the legitimacy of the job and the platform offering it, especially if they claim to be connected to well-known companies.

3. Investment Requirement: If the scheme demands upfront money, especially through payments or deposits, be skeptical. Legitimate job opportunities usually don't require upfront payments.

4. Ponzi Scheme Structure: Ponzi schemes are unsustainable and eventually collapse.

5. No Registration or License: Legitimate investments are typically registered with relevant authorities.

6. Pressure to Recruit: Scammers may push individuals to recruit others to join the scheme, focusing on rewards for bringing in new investors.

7. Lack of Transparency: If the investment process, company background, or scheme organizers' details are unclear or undisclosed, exercise caution. 8. Legitimate opportunities provide transparency in these aspects.

SEC Reminder

The SEC strongly advises the public against investing in or continuing to invest in such scams, as they are fraudulent and unsustainable. The Commission emphasized that selling securities through fraudulent and unsustainable Ponzi schemes is not allowed, and the SEC will not issue licenses for such activities.

Individuals acting as salesmen, brokers, or agents for these scams may face criminal liability, including fines or imprisonment. The authorities will report all involved individuals to the Bureau of Internal Revenue (BIR) for appropriate penalties and taxes.

First Warning for a Recharging and Tasking Scam

In a January 8 advisory, the SEC alerted the public to GOSHOP PH, an entity promoting an online platform offering online jobs with promises of high commissions for completing tasks. The Commission stressed that the platform, operating at https://goshopph.net/, uses a counterfeit certificate of incorporation to appear legitimate. The advisory identifies this scheme as involving the sale of securities through “investment contracts,” necessitating proper registration with the SEC.

Stay vigilant and protect yourself from Recharging and Tasking Scams. If you encounter suspicious activities or have concerns, contact the SEC for guidance and assistance.