The Anatomy of a Scam

How to Spot Investment Fraud: Professional Wealth Protection Strategies by David Angway, RFP.

[0:00] – How do investment scams work? Understanding the psychology of financial fraud.

[0:45] – Are investment scams increasing in the Philippines? 2024-2026 fraud trends.

[1:30] – Is a guaranteed 10% monthly return a scam? Identifying unrealistic ROI red flags.

[2:45] – How to check if a company is SEC licensed to solicit investments? Verifying individual and organizational credentials.

[4:15] – What are the common high-pressure sales tactics in scams? Recognizing the "Last Ride" hype.

[6:00] – Should I transfer investment money to a personal bank account? The dangers of co-mingling funds.

[8:15] – Does SEC registration protect you from scams? Understanding the difference between registration and secondary licensing.

[10:30] – How do professional investors evaluate risk vs ROI? Why managing the downside is key to wealth.

[12:45] – When should you hire a Registered Financial Planner (RFP)? The roles of Attorneys, CPAs, and RFPs in fraud prevention.

[15:30] – How to read a financial contract's fine print? Managing technical and legal investment risk.

[17:05] – What are the 3Ps of a good investment? Evaluating Purpose, Peace of Mind, and Prosperity.

[18:45] – How to protect your wealth from scams? Final advice on your financial journey.

YouTube & Website Timestamps: The Anatomy of a Scam

[0:00] – Introduction: The Psychology of Investment Scams

[0:45] – 2024-2025 Scam Trends: Why reports are dropping

[1:30] – Red Flag #1: The trap of "Guaranteed" 8-10% Monthly Returns

[2:45] – Red Flag #2: Verifying Individual and Organizational Licensing

[4:15] – Red Flag #3: High-Pressure Tactics & the "Last Ride" Hype

[6:00] – Red Flag #4: Personal Account Transfers & Co-mingling Funds

[8:15] – Why SEC Registration alone is not enough protection

[10:30] – Risk vs. ROI: Why professional investors look at the downside first

[12:45] – The Professional Trio: RFP, Attorney, and CPA roles

[15:30] – Reading Fine Print: Managing technical financial risk

[17:05] – The 3P Criteria: Purpose, Peace of Mind, and Prosperity

[18:45] – Final Advice: Protecting your wealth journey

The Discussion: The Anatomy of an Investment Scam

Despite a 36% decrease in reported investment scams from 2023 to 2024, thousands of Filipinos still lose their life savings to fraudulent schemes. Registered Financial Expert and Investment Advisor David Angway shares professional insights on how to stay protected.

Frequently Asked Questions (FAQ)

What are the immediate "Red Flags" of a potential investment scam?

David Angway: There are several clear indicators that an investment is actually a scam. If you see these signs, walk away:

• Guaranteed High Returns: Any offer promising a "guaranteed" 8% to 10% monthly return is a massive red flag. Real investments involve risk and market fluctuations.

• Lack of Individual Licensing: The person soliciting the funds must be personally registered and licensed to do so.

• Lack of Organizational Licensing: Even if the person seems professional, the organization they represent must have a license from the SEC (Securities and Exchange Commission) to solicit investments.

• High-Pressure "Hype" Tactics: Scammers often use FOMO (Fear Of Missing Out), claiming this is the "last ride" or a "limited time" offer to force you into a quick decision.

• Personal Bank Account Transfers: Never send investment funds to a personal bank account. This is called "co-mingling" and is a standard sign of fraud.

How should wealthy clients research a company before investing?

David Angway: Don't rely on "sabi-sabi" (hearsay). You must have a strict criteria for judging a company’s stability:

1. Stability: How long has the company been operating?

2. Recourse: If the company fails, what is the recovery process for your money? Who can you legally hold accountable?

3. Legitimacy: Verify their SEC registration and secondary licenses for investment solicitation.

4. Risk Management: Focus on the risk, not just the Return on Investment (ROI). If you can't read the fine print, don't sign.

Who should be on a wealthy investor's "Professional Team"?

David Angway: To protect your wealth, you should never make major financial decisions alone. You need a team of three specific professionals:

• Financial Advisor/Planner: To align the investment with your overall wealth goals.

• Attorney: To review contracts and explain legal terms or "fine print."

• Accountant/CPA: To handle the technicalities and tax implications of the investment.

What is the "3P" Criteria for any investment?

David Angway: Before committing your capital, evaluate the investment against these three P’s:

1. Purpose: Is your goal for this money clear?

2. Peace of Mind: Does this investment keep you up at night? If you are stressed, it’s not the right move.

3. Prosperity: Does this actually advance your journey, or does it risk plunging you into poverty?

Clean Takeaways for Investors

• Scams Focus on ROI, Professionals Focus on Risk: If a solicitor only talks about how much you will make and not how you are protected, it is likely a scam.

• Verify Licenses: Always check both the individual’s and the company’s license to solicit investments via the SEC.

• Avoid Co-mingling: Legitimate investments are processed through corporate accounts, not personal ones.

• The 48-Hour Rule: High-pressure sales tactics are designed to bypass your logical brain. Always take at least 48 hours to consult your professional team.

• Due Diligence is Mandatory: Relevant research is your best defense. If you don't understand the business model, do not invest.

For professional wealth planning and fraud prevention consulting, visit davidangway.com.