Top 9 Reasons Why Filipinos Easily Fall for Scams
Updated: Oct 28, 2021
Hearing investment rip-offs in the news is not new in the Philippines. We often hear various kinds of fraudulent investments such as online investment scams, paluwagan scams, ponzi schemes, etc. But regardless of how these bogus cases are recurring, Filipinos tend to easily fall for scams all over again.
In this article, we will discuss the top nine reasons why Filipinos are highly enticed by these get-rich-quick investment schemes.
1. Want to get rich quickly
Filipinos are globally known to be one of the most hardworking individuals. Still, most of us often realize that no matter how much effort we pour in, our salary will never be enough to reach those goals or even to make our ends meet.
If we will be given a slim chance of getting rich in an instant, we will grab it without having second thoughts. We tend to risk our life savings to the unknown and “invest” it in something that would give us high returns the easiest way possible.
2. Enticed by high and guaranteed returns
You need not be very good at Math to become very excited with the profit you will be receiving for a certain investment. Oftentimes, we are too overwhelmed with the high and guaranteed returns of the “IN”vestment someone is offering.
Before even receiving it, we already have plans on what gadgets to buy, what bills to pay and what places to travel. Most of the time, this mentality is used against us. Defrauders know exactly what our weaknesses are so they will promise high and guaranteed returns in exchange for our hard-earned money.
3. Always want the easy way
If we are given legit ways to earn but still requires some kind of hard work, our mind automatically backs off. We always want the easy way out. Same with investing. We’d rather invest in something that promises high profits the quickest way than investing in legit but slow-paced investments where a little research is still needed.
Know that every investment has a different level of risks. It is the rule of thumb that the higher the risk, the higher the return on investment. It could also be that the higher the return on investment, the higher the chances of getting scammed. If it seems too good to be true, then it probably is.
4. Envious of other people’s success
Social media is very powerful in inspiring us to do more, to work more, and to earn more. Those travel and life goals appearing to our newsfeeds always keep our arse up and working to achieve our very own aspirations in life.
Nothing is actually wrong with getting inspired by other people’s successes we often read and see online.
It will become faulty when we get deceived by false successes especially when it comes to wealth. Some people post “inspirational stories” with deceitful proofs of income to attract their prospects. And because we are envious of how these people have attained so much, we tend to give in, hoping that we will arrive with the same results instantly.
5. Fear of missing out
FOMO or the fear of missing out is our desire to do the same thing as what other people are doing. Or else, we will be left out with the current trend. And we don’t want that kind of feeling.
The FOMO mentality is common to us, Filipinos. We tend to dive into “IN”vestments because everybody else is doing it, without even doing our own research about the type of investment being offered. We often get totally hyped by the things we see online.
6. Scarcity Mindset
“What are you waiting for? Grab this opportunity now before it’s too late! Limited slots only!”
Familiar? It’s funny how the magic words “limited” and “opportunity” trick our mind to profusely respond to the investment being offered.
The scarcity mindset is just like the FOMO mindset in which we are afraid of missing the opportunity to gain financially, just like how mall sales are used to trick our brains that it will surely be a lost opportunity if we fail to grab the once in a year ultra mega sale!
7. The “How” mentality
How many times have you seen investment opportunities online having the same concept as Invest, Wait, and Earn? How many times have you left the curiosity-sparkled “How” comment on those posts?
We Filipinos often have this mentality to let others do the research. We always base financial successes on the results we see and not on the process of achieving it. So when we see someone posting their earnings while saying “Comment how and I’ll send you a pm”, our curiosity sparks instantly. And most of the time, this is when the scam journey starts.
8. Trusting too much
Scam investments spread like a virus. We may even get such financial taint from our colleagues, online friends, beshies, and even family members. We base the legality and legitimacy of the offered investment through the word of mouth.
Right now, there are many Filipinos who fall for pyramiding schemes. One of the symptoms of this investment rip-off virus is to invite someone just to earn. There are no concrete products being offered so you will never earn unless you recruit/invite someone. Though the “galawan” seems obvious, we still give in because we ultimately trust the person who is referring it to us.
9. Lack of financial knowledge
For two decades of studying, we are taught how to earn money but not how to handle it correctly. We often get into scams because we have a crooked belief about money and wealth.
We often skip the financial fundamentals for we are too excited to earn passively without absorbing the true essence of “passive income”. We always want the easy way. We are always fond of taking shortcuts. Our financial wisdom is not that strong enough that we are easily swayed by different financial fraudulence.
Let it stop through you. Do not let other people fall for scams
Wealth building is a slow and painful process. It is like planting a tree in which you can’t expect to harvest the fruits the next day.
All of us have different aspirations and life goals. We always want to give a comfortable life for our family. These are the biggest reasons why we wanted to earn more, but these reasons shouldn’t be enough to take financial shortcuts. Instead of having the financial well-being we wanted to achieve, we would end up getting exploited because we are enticed to follow the alternative route.
Before I end this, I would like to leave you with a verse from the Book of Proverbs which says “Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time.” (Proverbs 13:11, NLT).
If you think the investment you are in right now is a scam, do your family and friends a favor. Do not invite them unless those investments are proven to be LEGIT (complete with legalities). Let it stop through you.