SEC Warns Against Fake Lending App, Cites Risk of Fraud and Identity Theft

MANILA, Philippines — The Securities and Exchange Commission (SEC) has warned the public against a Facebook page allegedly posing as a licensed online lender by using the corporate identity of a registered lending company without authorization, cautioning that such schemes could expose borrowers to fraud and identity theft. In a public advisory, the regulator identified the Facebook page “PondoCash” as the subject of a complaint for allegedly using the business identity and other identifying information of Empire Peak Lending Investors Inc. to create the false impression that it is affiliated with or operated by the company. READ: SEC cracks down on illegal online lending platforms “The company has formally informed the Commission that it does not own, operate, manage, authorize, sponsor, endorse or maintain any affiliation whatsoever with the foregoing Facebook page,” the SEC said. The company is a registered lending firm with recorded online lending platforms (OLPs) “Pondocash” and “Peranyo.” The SEC said the Facebook page’s alleged use of the firm’s identity could mislead the public into believing it is a legitimate extension of the company’s online lending operations. READ: SEC warns public against surge in online loan scams The SEC stressed that only financing and lending companies duly registered with the commission and with properly recorded OLPs are authorized to engage in online lending activities and offer loan products through digital channels. It warned that entities or individuals operating through unregistered or unauthorized online platforms are not recognized by the regulator and may be involved in fraudulent, deceptive or unlawful activities that could harm borrowers. According to the Commission, the unauthorized use of a registered company’s name, trade identity or online presence in connection with lending activities may expose the public to fraudulent loan schemes, unauthorized collection of payments, identity theft, misuse of personal information and other forms of financial or cyber-enabled fraud. INQ