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SEC warns against online investment scams with paid-to-click schemes

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The Securities and Exchange Commission (SEC) has advised the public against investment scams with paid-to-click (PTC) programs, noting that some may be Ponzi schemes that places them at the risk of losing money.

In an advisory posted to its website on Wednesday, May 23, the SEC cautioned against online-based advertising firms that use the PTC method, where people are asked to pay an upfront fee or are offered to buy products. Doing so will then give investors a share of the program’s profits.

Such types of schemes usually promise high returns in a short span of time “by doing bogus clicking jobs, by logging in everyday or by obtaining referrals or buying ad packs,” the commission said.

The SEC said that some of these programs may actually be investment scams, or the so-called Ponzi scheme, where earlier investors are paid with fake profits by recruiting more investors into the network. — Arra B. Francia

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