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Even President Arroyo is no stranger to text scams. 

 

In a press briefing in Makati City, Trade Secretary Peter Favila admitted that Mrs. Arroyo and Cabinet members have been receiving fraudulent text messages who claim that they have won raffle prizes including cash, vehicles and even houses. 

 

“There have been attempts to lure me in these types of scams. Even the president receives these types of text messages saying that she has won a million pesos from some charity and asking if she could deposit money in a bank account,” Favila said at the launch of the Security Awareness and Fraud Education (SAFE) program. 

 

He said the President usually forwards these text messages to other Cabinet members “so they would know that these types of fraudulent schemes continue to happen.”

 

Victor Bessat, deputy director of the National Bureau of Investigation Anti-Fraud and Computer Crime Division, said the bureau receives an average of 10 to 20 complaints a day of various types of scams ranging from text scams to fraudulent auction bids. He added, however, that most of the scams being reported to the bureau are text scams. 

 

Bessat said the advent of new technology such as mobile phones and Internet has emboldened syndicates to target more unsuspecting victims in the country. 

 

“Most fraudsters now use mobile phones and most of the fraudulent deals are being done through, using mobile technology,” he said, adding that: “The only way that we can stop fraud is to educate people in order to prevent crimes from happening.”

 

Patricia Zamora-Riingen, regional vice-president for The Western Union Company Philippines and Indochina, said she expects fraudulent activities to proliferate due to the economic downturn. She said that text scams are becoming more prevalent and have also started to affect overseas Filipino workers (OFWs) who have no idea that the text messages they are receiving are fraudulent.   

 

“It’s become a global issue already because it’s easier to reach out to OFWs through text,” she said. 

 

 

Bessat listed the different types of scams including: 

 

The lottery/prize scam: The consumer will be contacted by SMS or e-mail with news that he/she has won a large sum of money, but in order to receive the winnings, he/she must first pay the taxes by depositing into a stranger’s account. The consumer sends the funds, but the winnings are never received.

 

The charity donation scam: The victim will be told that the culprit is a representative of either a fake charity organization or a recognized government foundation tasked to secure donations for a worthy cause. The victim will be given contact details and information on how he/she can donate via the fraudster. 

 

The online auction purchase scam: The consumer with the winning bid in an online auction is instructed that the seller will only accept money transfer as a form of payment. The seller may also instruct the consumer to use a fictitious name for the transfer, to ‘protect themselves’ until the goods are received – but they never arrive.

 

The dugu-dugo or budul-budol scam: The victim will receive a call from someone who claims to be a family member stating that a loved one has been kidnapped or hurt, and will need the victim to make a transfer of money to a stranger to avoid the kidnapped relative from being harmed or to pay for medical expenses. 

 

The recruitment scam: The victim will receive an offer to a job overseas from an individual who claims to represent an agency or the employer, and requests for a placement fee to be transferred to his/her account to facilitate the application process. 

 

The business investment scam: A business may receive a request from a stranger posing as a representative of a major corporation offering the opportunity to become involved in a large commercial operation. The offer will involve very large financial returns and will require the victim to finance portions of the business venture. All payments will be required to be forwarded in amounts between P10,000 and P50,000. Examples of the requests for money include: 

The Nigerian inheritance/legacy scam: The consumer is contacted, usually by email, by an individual claiming to be either a representative of the Nigerian government, a wealthy business person or the widow of a deposed leader. The trickster may claim that they have discovered a bank account belonging to a deceased citizen or has come into possession of a large sum of money. The trickster offers to share the proceeds if the consumer allows him/her to deposit the money into their bank account. The consumer is asked to provide their account details and other sensitive information. However, before the transaction takes place, an “unforeseen difficulty” occurs and additional fees from the victim are “necessary to overcome the problem”.

 

 

Due to the rise of fraud schemes, Favila said he is asking Congress to impose tougher sanctions including outright imprisonment of fraudsters. 

 

He said the P5,000-P10,000 fine imposed on fraudsters has failed to deter these criminals from breaking the law again and again. 

 

“The P5,000 to P10,000 fine is too small. Some unscrupulous businessmen even dare us that they will already deposit a whole year’s worth of fines in advance. They even hire really good lawyers. It’s clear that we have to make these sanctions a real deterrent,” he said. 

 

Bessat said consumers should not be ashamed to admit if they have been victimized by these types of scams. 

 

“Nahihiya tayo dahil akala natin siguro naisahan tayo e kahit napakarunong tayo, mas marunong yung nanloloko. (We feel ashamed that we’ve been had. We think we’re smart when these criminals are even smarter.) But feeling ashamed will not bring this criminals to justice. Reporting these crimes will,” he said.

 

Riingen said Western Union has re-designed its money transfer forms and added fraud prevention information as well as the NBI Hotline to encourage people to ask the right questions before they send their money. 

 

She said SAFE Program posters and flyers offering tips on how to avoid becoming a victim of fraud will be placed at over 7,300 Western Union Agent locations in the Philippines, as well as DTI and NBI offices nationwide over the next six months. 

 

Favila said the launch of the SAFE Program intends to create a culture of more empowered consumers who know the different types of fraudulent activities being perpetrated in the country. 

 

“Education is the best weapon against fraud. By recognizing a scam, people protect themselves,” he said.