THE Securities and Exchange Commission (SEC) and the Philippine Stock Exchange are urging the public not to engage with fake firms using various methods to deceive an unsuspecting investor.

The advisories were issued after Bagong Bansang Maharlika (BBM) International Inc. was found to be operating in the Visayas and Mindanao despite the November 2023 revocation of its permit by the SEC.

The fake firm was said to be collecting membership fees from local residents, promising food security, free education, free hospitalization, cash assistance, and livelihood to all Filipinos at least a year old and above in exchange for the fees paid.

The SEC reiterated that such fraudsters may be held criminally liable under Republic Act 11765, or the Financial Products and Services Consumer Protection Act, and under Section 28 of Republic Act 8799, or the Securities Regulation Code.

Violators may face fines of up to P5 million or imprisonment of up to 21 years, or both, it said.

The PSE also warned the public about a fraudulent cryptocurrency investing scheme that had been using the PSE logo and name on its website.

"The public is advised that PSE neither owns nor operates the website 'https://psephilippine.com/User/index,' it does not sell cryptocurrencies, it does not have a 'customer service' team, and its employees or agents do not advertise or promote, for purposes of investment, cryptocurrency," the bourse emphasized.

Using social media apps, the cryptocurrency scammers entice potential investors to register and create an account through a website.

The potential investors are then made to believe their investments are doing well and are encouraged to increase their investments through various e-wallet accounts.

Later, the victims would be informed they had entered the wrong order of their account's withdrawal password.

"The scammers will offer to consult with PSE's customer service on how to address the issue. The solution provided is to create a new account that requires a new deposit and completing new tasks," the bourse added.

The public is therefore warned to "exercise extreme caution and vigilance" in dealing with such entities, "especially those which promise guaranteed returns or income," the PSE explained.