A Case Analysis

Presented to the Faculty of

FEU Alabang SHS Department

Submitted by:

Carasig, Kal-El Franco Renato R.

Guarino, Joshua P.

Monroy, Mick Jethro J.

Nopuente, Axl Edric A.

Section

Grade 11 – SI01

Submitted to:

Mr. Raden R. Alvarez

Date

04/01/ 2019
TABLE OF CONTENT

I. Root cause

Crimes like these happen when people look for an “easy” mean to earn money without doing

hard work. Some individuals do not know the value of working hard for their goals which is

the reason they want the quick way out. People are lured into investing all of their savings

because the criminals persuade them by using convincing, but fake, documents and graphs.

They are enticed to invest because they think it is a legitimate and an uncomplicated method

to realizing all of their goals and dreams.

II. Analysis

The Philippines is one of the countries that encourage diversity with its infamous lenient

security measures. This fact gives other people an opportunity to make use of its resources

and potentials without having to worry about what they might have to go through given the

security of the country. Scams have always made headlines in the Philippines and, as often as

it may seem, the issue really ranges from scams that happen behind the screens, with the use

of different media platforms, to real life and face-to-face cases. For years, it has become one

of the most intriguing problems different departments of the country need to face, whether it

be the tourism department, all the way down to departments that offer crafts and services.

Root causes that arise from the problem vary from time to time, depending on the background

of the people involved. Most of the scammers aim to collect financial aids for their own

sakes. These scammers threaten people with authority, influence and power. They disguise

themselves as “helpers” of the society, desiring for people to enjoy opportunities that only

few organizations can offer, without the need to go through multiple and complex processes.

As for the victims, they fall under the stereotype that most of them would be frail and weak,

with reduced abilities to process cognitively. However, studies made prove that most of scam
victims are actually different from what they seem to be. Most of them are brave enough to

invest something valuable, and are adventurous enough to grab opportunities and actually

believe that they would gain something greater in return. Research done in the last few years,

including a study sponsored by American organizations, indicates that a key to remember is

that if you believe you aren’t likely to be scammed, then that means you’re at greater risk

than others. Anyone can be a victim of scam, but not everyone acknowledges that fact.

The article reviewed represents only a small percentage of the reality of scam problem in the

Philippines, but it showcased an evident call for action and a problem that is most of the time

disregarded by locals and tourists. The diversity and opportunities here in the Philippines are

not the problem, more so the geographical location of the country (stated because there are

really people who conclude that one of the root causes of crimes like scam is because the

Philippines is situated in Asia, and Asia is one of the continents that really tolerate issues like

the one stated) and its resources. The problem is the security offered to people and the

country. This opens the door for further assessment as regards to how the government

handles security and safety for the betterment of the country.

III. Recommendation

The people can avoid being a victim of this type of online scam by verifying the authenticity

of the company itself and its business documents. Contact, if possible, the Department of

Trade and Industry to check if the company is legally registered to do business and if they are

clear of any past records of fraudulent activities.

Be wary of the company making promises which are too good to be true. Would-be investors

should be skeptical of investment pitches that promise a certain profit within an improbable

amount of time. People are blinded by the amount of money they think they can make within
such little time – the reason they are pulled into investing in these online scams. Nothing is

ever earned overnight. Money cannot be produced in an instant.

IV. Conclusion

To conclude, the online investment scene is a risky business to venture into. A person could

lose all of his savings if he is not cautious enough to spot online scams and fraudulent

companies. If it is absolutely necessary for you to deal with someone online, maybe a

company or an individual, take all precautions to ensure that both parties will benefit from the

transaction.

V. Identified Cybercrime

Online stocks trading scam

This refers to a range of unethical behavior, from providing deceptive/fake information to

lure an investor to invest in some venture, to account mismanagement and even false trading

advice. Also convincing them that they can expect to gain a high profit by trading in the

foreign exchange market.

Article 315 of the Revised Penal Code of the Philippines (Syndicated Estafa)

It is the legal term used to define certain forms of swindling individuals. It is an element of

deceit and fraud used by the perpetrator against the victim.

VI. Five possible reasons

A. Because some of the countries are so poor that they have to steal other

people’s currency through online so that they won’t get jailed since the people who got

scammed is in another country.

 B. Some people’s personal computers are way too easy to get unauthorized

access because of outdated anti-virus or security applications. Since the anti-virus is not

updated, scammers can create some clone websites that doesn’t have secured payment

options and use it on them.

C. It is one of the easiest illegal jobs. Scammers can earn so much money by

doing nothing - just waiting for the people give their information and their credit card

numbers through the fake site.

D. Some people are very vulnerable to attacks on the internet such as scams,

frauds and phishing and these people are the ones being targeted by scammers.

E. Lack of internet knowledge - some people are not aware of how big the

internet is and the dangers might lurking in the cyber realm. Also, there are people who take

advantage of this for their personal purposes: to con people and to try to take their money,

information and valuables.

VII. Ten Ethical Guidelines

A. Scamming another individual is wrong. All forms of businesses should be

legal.

B. Be accountable for your actions especially when you have committed a

mistake towards another person.

C. Do not risk your integrity just to earn quick money using questionable

methods.

D. An individual should know the value of hard work. Success is not earned

overnight; it requires dedication over a long period of time.

 E. Investing in something like stocks can be dangerous because it is unstable.

Make sure your investment is secure and you have something to fall back on

when it fails.

F. Use your money wisely. Allocate a budget and follow it to avoid overspending

and debt.

G. If you have any debt, prioritize them. It is better to pay them off first before

making any other purchases or transactions.

H. Do not steal anything from anyone using any means. It might be in the digital

or physical form. It is illegal.

I. If someone entrusts to you anything of value, you must not use it for your own

gain.

J. Always adhere to the laws regarding cybercrime.

VIII. Ten Privacy Guidelines

A. Always check your computer’s anti-virus applications. Make sure that the

application you installed is verified by many users and is updated to the latest

release.

B. If you’re going to shop through online sites, make sure these sites have Https

(Hypertext Transfer Protocol Secure) on it so that your payment is secured and

verified.

C. An individual should always be wary of websites because they might be

phishing your data. You might not notice it but these sites may also be loaded

with dozens of viruses that can get access to your accounts and credit cards.

D. Do not give your account information to anyone who you do not trust.
E. Using internet cafés is risky too because if they obtained your account’s

password, they can now have the access to it and steal your personal

information to create another account. They might use it to make illegal

transactions using your identity.

F. Everytime you’re doing a transaction, always ask for legitimacy of business.

Official receipts and transaction numbers should always be given to the

customers.

G. Always keep your personal information or details secure, so that they won’t

use it against you if they’re doing something suspicious or unlawful.

H. Passwords sometimes are easy to guess because they are weak. Quickly

change them to something strong and not easy to decipher because there are

lots of hackers that can guess or hack them by using their own hacking device

or application.

I. If someone who’s not verified emailed you and told you to click the link that

says you won a million dollars but you didn’t sign up anywhere, do not open

the link because it might lead you to instantly download something or lead you

to somewhere that has a lot of trojan sites.

J. Darknet or Deepweb has a lot of suspicious actions. Never access these sites

because there is a great chance that these will track you down or steal your

personal information.
IX. Supporting Evidence

Articles / News
Almost 500 employees along with 8 Israeli nationals were arrested in Clark Freeport Zone,
Pampanga. They were arrested over a million-dollar online stocks trading scam according to
police chief Oscar Albayalde. International Branding Development Marketing Inc.’s 474
employees were caught in the act of communicating and doing online transactions with their
“clients” from various countries around the world.

References
Ballaran, J. (2018, June 7). 8 Israelis, 500 workers nabbed in Pampanga over online stocks
trading scam. Retrieved from https://newsinfo.inquirer.net/998457/eight-israelis-500-
workers-nabbed-in-pampanga-over-online-stocks-trading-scam

Articles / News
Nearly 500 individuals and eight Israeli nationals were arrested in a raid on Wednesday
morning, June 6, 2018. The people were arrested on an alleged engagement in online fraud in
Clark Freeport Zone in Angeles City, Pampanga. The PNP simultaneously swooped down on
the three sites were the people were working. They were charged for violating the
Cybercrime Prevention Act of 2012 in accordance to Article 315 or Syndicated Estafa.
References

Peralta-Malonzo, A. (2018, June 07). 8 Israelis, over 400 Pinoys busted for online scam.
Retrieved from https://www.sunstar.com.ph/article/1746911