Year: 2019

 

Saving solves it all. As daunting as expenses can be, people can avoid going broke or running out of money by simply setting aside consistent amounts for their future. You may have heard of stories about people who had nothing at first, but then decided to save up after every payday and invested it on a wise financial choice, such as a business or a partnership venture, then went on to become one of today’s richest conglomerate. Stories such as these are a living proof that anyone can be successful with the right mindset and the ready-to-go attitude of rolling up their sleeves for a hard day’s worth of work.

Of course, while inspiring stories such as these may motivate many to save up wisely, there are still those who do not understand the fundamentals of saving, mainly due to the fact that product prices are at an all-time high, and that money saved would simply be “withdrawn” to sustain daily needs in the household. Admittedly, this has been the situation for quite a while, that is until an innovative financial process came along to even the playing field, the Cebuana LhuillierMicro Savings!

First of all, what is Micro Savings?

A quick online search gave the following definition – “It is a branch of microfinance, consisting of a small deposit account offered to lower-income families or individuals as an incentive to store funds for future use. Microsavings accounts work similar to a normal savings account, however, are designed around smaller amounts of money. There is no maintaining balance,allowing users to save small amounts of money and not be charged for the service.”

To put that into perspective, it’s very much like opening a savings account in your local bank, however, in a much more “affordable” and manageable scale. Micro Saving understands the situation of lower-income families or individuals, offering a much convenient solution when it comes to investing financially without a large risk at hand. No one wants to experience the never-ending cycle of getting your monthly wage, depositing it in the bank, then having to withdraw it again as your expenses wouldn’t allow your budget to cut corners. This new financial innovation breaks that particular cycle, thus, giving a majority of hard workers a much bigger chance of creating their success stories in life and for the future of their families.

How can it help in the long run?

It can help in a variety of ways, and the opportunities that Micro Savings can provide extends its reach to various members of the society, may it be an individual or a group. The following are a subset of categories by which Micro Savings can help out in the long run. Take note that these are just some of the many examples, and the reach that Micro Savings has is limitless, with the proper implementation and cooperation of the participating parties or individuals.

1.)For Retirees/Pensioners.

Our beloved senior citizens have spent their lives grinding away at work, carrying nothing but the hope of giving their sons, daughters, and even grandchildren a good life. Now that they are retired and hoping to be their own bosses, Micro Savings would at least help them out in realizing that dream into reality. Yes, they may receive a certain amount every month due to their pensioner status, but even that may not be enough to compensate for a business venture. Those who have applied for a Micro Savings in the earlier part of their careers may obviously reap the benefits during their retirement. If they were to combine the amounts that they’ve saved with Micro Savings and their upcoming monthly pensions, they would truly have enough for a venture late into their lifetime.

2.)For those who are Planning to Have a Business of their Own.

Remember when we said that those who have applied for a Micro Savings in the earlier part of their careers may obviously reap the benefits during their retirement? This is true, but why wait to reap the benefits until your retirement, if you can utilize them during the younger and mid-life stage of your life. Do you see the pattern now? The earlier that you acquire a Micro Savings account, the more that you’ll be able to save moving forward, hence, why starting out early is the key. In Cebuana Lhuillier, for example, Filipino citizens as young as seven (7) years old are qualified to open an account, which can be considered as a “kids savings” or “junior savings” account. If you were not to touch any of that until your adult years, just imagine how much you could have already saved by then. And we haven’t even started on the interest rates as well. Remember, as you save up along the way, the interest rate adds to that, Cebuana Lhuiller’s Interest Rate Per Annum is 0.30%, with a minimum balance of Php 500 to initiate the earning of interest.

So imagine if you were to start early and use that saved amount into your adult years of business planning, at least you’d have enough to start up a venture, with little (to even non-existent) margin of error, as you already have the appropriate amounts.

3.)For those who are Preparing for Emergencies.

According to data gathered back in 2018, on average, the Philippines would experience up to 20 typhoons per year. The amount of damage to property and livelihood is both devastating and limitless, which is why everyone should have the mindset of preparation when it comes to tackling these expenses. If you are one of the many who would set aside money for future emergencies, then we would urge you to try out Micro Savings, as not only is it a far more manageable way of saving, it would also be easier to withdraw, just in case your property procures damage during the ordeal. Remember, those who are always prepared comes out of the ordeal with less amounts of scratches, meaning that the financial blow caused by storms and typhoons wouldn’t be too bad in the long run.

Preparations aside, Micro Savings has its various perks and advantages. The financial outcome would simply depend on the manner in which a group or individual utilizes those returns. Speaking of perks and advantages, Cebuana Lhuillier has something for their avid Micro Saving patrons. Introducing, the Cebuana Lhuillier Ka-Cebuana Iponaryo Contest! Joining the promo is simple as 1-2-3. For more details, they may visit https://www.cebuanalhuillier.com/ka-cebuana-iponaryo-contest/ or inquire through the nearest Cebuana Lhuillier branch.

Investments – there are countless resources that you can capitalize on in order to make a living, or even to double your profits. Like most activities which would involve hard work, you may need to invest time as well in order to make it work. Sure, there are a lot of things at risk when you’re investing resources at your disposal, with no guaranty of a huge return in the end, but that doesn’t mean that you should not take the risk. Remember, fortune favors the bold, and if it’s fortune that you’re seeking, then your options are limitless. In any case, you do not even need to look far if you’re to discover these investments within your reach, you have your time, money (savings), connections, and even your colleagues to help you out if you ever decide to invest towards a particular goal.

First of all, what is the very definition of “investment?”

The truth is, the definition may vary, depending on what you’re going to invest. It is “an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.” Take note that it usually concerns the outlay of some asset today, like time, money, effort, etc., in hopes of a greater payoff in the future than what was originally put in.

One of the main goals of investing is that you may double your profits in the end, a wise investment may either double or even triple your return, as long as you’d make wise decisions along the way. This is no different than reviewing for your exams back in high school. If you were to invest time reading your books, reviewing your notes and lessons, surely, the return would be a high, exemplary grade worthy of any proud parent’s attention. In business, the same principle applies, if you were to invest a reasonable amount while playing your cards right, your venture may bring in a high return of earnings at the ends of the day. Such are the very origins of many successful businesses today, with apps, gadgets, appliances, cars, and even furniture taking in the helm.

Risks in Investments

As with all things in life, there will always be risks. Counting on something to work without expecting the possible obstacles along the way would be an unwise thing to do, as being complacent in the long run would make you unprepared when something doesn’t go according to plan, and most of the time, especially when it comes to financial matters, they don’t go over smoothly.

All successful businessmen went through the very same rough patch that you may encounter along the way, hence, why you should lift your head up high and remember that there will always be solutions to every problem. Your financial investments aren’t safe from risks, but that doesn’t mean that you should give up at the first sign of trouble, you should instead take every lesson in stride and continue to march towards your goal, may it be doubling your returns or solidifying the legacy of your venture.

After all, all investments involve some degree of risk. In finance alone, there will always be a touch of uncertainty and/or potential financial loss inherent in an investment decision.  In general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks.

Major Risks that may affect your Investment

1.)Scams

Let’s face it, there will always be people out there who do not have our best intentions at heart. You may have heard stories of people falling victim to these scams, perpetrated when they least expect it or when they were not on their guard. Indeed, falling prey to scams would garner a huge financial lost, hence, why you shouldn’t always trust strangers who are offering an immediate increase in investment returns. Do not be fooled by modern day investment scams, read the newspaper, watch your evening news, learn about these scams via your social media apps. Victims are always willing to share their side of the story, learn from them and always remember the dos and don’ts of trusting other people.

2.)External Calamities

You’ve already set up your small venture (local store), invested your life savings on all of the needed materials and structure, and even spent a few on marketing your business, when all of a sudden, a huge typhoon ravages your community, costing a lot in damages, including your business. This is one of those situations in which investors (such as you) would have preferred to be robbed instead of being hit by the storm. At least if thieves were to take a few of your earnings, they wouldn’t have had destroyed the whole place in the process. The thing is, the Philippines is prone to storms and calamities. In the recent years, 20 typhoons were recorded to have landed in the country, and that is on a year to year basis. So aside from unscrupulous scammers, you have the weather to worry about as well. In such case, the best thing would be to insure your business, thus, lessening the cost and taking you a step beyond storm warnings.

3.)Constant Inflation

This has been a concern of many business moguls for quite a while now. The mere definition of a financial inflation is the general upward movement of prices.  Inflation reduces purchasing power, which is a risk for investors receiving a fixed rate of interest.  The principal concern for individuals investing in cash equivalents is that inflation will erode returns. That last part alone is enough to send chills down every investor’s spine. Again, preparing for such an unexpected event may ease up possible loses in the long run.

4.)General Business Risk

Some concerns may come from the very core of your business decisions. If you didn’t make a wise choice early on, it may come back to haunt you (financially). If that part doesn’t ring a bell, take this very specific example from one of our online searches:

“With a stock, you are purchasing a piece of ownership in a company.  With a bond, you are loaning money to a company.  Returns from both of these investments require that that the company stays in business. If a company goes bankrupt and its assets are liquidated, common stockholders are the last in line to share in the proceeds.  If there are assets, the company’s bondholders will be paid first, then holders of preferred stock.  If you are a common stockholder, you get whatever is left, which may be nothing.”

Indeed, every step you take in business is a vital one, so choose wisely.

You may be looking for a very reliable way to protect your investments. Well, look no further than Cebuana Lhuillier’s MicroBiz Protect. It is a comprehensive Property Insurance with Personal Accident coverage, Comprehensive General Liability and AXA Assistance made specifically for micro enterprises. It covers the property and its contents against perils fire and/or lightning and other allied perils such as earthquake, typhoon, flood and others. It also covers MSMEs against burglary and robbery, accidental death, permanent disablement and accidental medical reimbursement. Fees for the micro-insurance policy covering up to 12 months can go as low as PHP540. Aside from that, it is also underwritten by AXA Philippines. Visit your nearest Cebuana Lhuillier branch now for more information – we assure a fast, easy and secure transaction.

Life is unpredictable. One day you’re out in the park, enjoying a family reunion while feeling that you’re on top of the world, and all of a sudden, something unexpected occurs. Most of the time, people are not aware of how things can change in a flash, calm becomes a storm and health is put in risk. In such case, a good investment is important to ensure that the future of your family would not go to waste. It is always better to be prepared than sorry, and Cebuana Lhuillier is here to help you accomplish just that.

Cebuana Lhuiller’s ProtectMax is a microinsurance product designed for individuals aged 7 to 70 years old with Death Benefit, Accident or Sickness Emergency Cash Assistance, Accidental Dismemberment and/or Disablement, Murder and Unprovoked Assault and Residential Fire Reconstruction cash assistance. For as low as P50, each certificate is valid for four (4) months from the date of issuance and can be availed up to a maximum of 5 certificates per insured.

Simply put, just think of all the insurances you’ve heard of before, and then raise them into a higher level, that’s what ProtectMax is. You are better off investing in this particular Microinsurance than if your main priority is attaining an insurance that’s affordable and worth your hard-earned money. You may ask, “Well, that sounds great! But is my family qualified for this?” The definite answer is yes! The following are qualified beneficiaries for ProtectMax:

 

Qualified beneficiaries:

• Legal Spouse
• Child of legal age (18 years old)
• Parents – Mother/Father
•   Siblings – of legal age and single; married

What are the Premiums?

Just P50. Yes, you’ve read that right. For as low as P50, you may avail this amazing Microinsurance. More specifically:

 

One (1) COC
Premium	Benefits	Coverage
Php 50	Accidental Death	Php 25,000
	Accidental Dismemberment and/or Disablement	Php 20,000
	Murder and Unprovoked Assault	Php 5,000
	Fire/Lightning Cash Assistance	Php 5,000
	Death Benefit (due to Sickness/Old age)	Php 5,000
	Accident or Sickness Emergency Cash Assistance	Php 1,000

Accidental Dismemberment and/or Disablement Php 20,000

Murder and Unprovoked Assault Php 5,000

Fire/Lightning Cash Assistance Php 5,000

Death Benefit (due to Sickness/Old age) Php 5,000

Accident or Sickness Emergency Cash Assistance Php 1,000

 

Now, just because the most affordable option is P50 doesn’t mean that you are limited to just that. Another premium is P250, by which, the coverage is much higher:

One (1) COC
Premium	Benefits	Coverage
Php 250	Accidental Death	Php 125,000
	Accidental Dismemberment and/or Disablement	Php 100,000
	Murder and Unprovoked Assault	Php 25,000
	Fire/Lightning Cash Assistance	Php 25,000
	Death Benefit (due to Sickness/Old age)	Php 25,000
	Accident or Sickness Emergency Cash Assistance	Php 1,000 per incident maximum of 5 incidents

 

Definitely, you might be tempted to get a higher premium as well, with the coverages at least including most of your loved ones. But the inclusions, premiums, and coverages aren’t the only advantage to Cebuana Lhuillier’s ProtectMax. The claiming process is as important and convenient as the other processes involved.

 

Processing of Claims:

1) In the event of a claim, the claimant shall submit the complete claim at any Cebuana Lhuillier branch nationwide.

2) Cebuana Lhuillier Branch Personnel shall review the completeness of all claim documents and submit to Cebuana Lhuillier Insurance Brokers, Inc. (CLIB) (depending on the type of claim) for claims evaluation and approval; the review shall be done in accordance with the guidelines of Pioneer Insurance and Surety Corporation (PISC).

3) CLIS will submit final advice, within 48 hours to the BP and claimant the status of the claim.

 

a. If a claim is approved, CLIB Head Office will pay the claimant in advance thru Pera Padala.

b.If the claim is Denied, CLIB Head Office shall send letter of denial to the claimant.

 

The Claim Requirements:

1) Accidental Death

a. Original Confirmation of Cover (COC)

b. Birth/Death Certificate (CTC)

c. Police Report/ Incident Report (Original)

d. Insured’s & Claimants Valid ID (with Photo and Signature)

e. Legal Supporting Document of claimant/beneficiary

 

2) Accidental Dismemberment, and/or Disablement

a. Photocopy of Confirmation of Cover (COC)

b. Police Report

c. Picture of Affected Body Part

d. Medical Certificate

e. Insured’s Valid ID (with Photo and Signature)

 

3) Murder and Unprovoked Assault

a. Original Confirmation of Cover (COC)

b. Death Certificate

c. Police Report

d. Insured’s & Claimants Valid ID (with Photo and Signature)

e. Legal Supporting Document of claimant/beneficiary

 

4) Fire/Lightning

a. Photocopy Confirmation of Cover (COC)

b. Picture(s) of burnt declared home address

c. Barangay Certificate

d. Insured Valid ID (with Photo, Signature, and Declared Address)

 

5) Death Benefit (Accidental or Sickness)

a. Original Confirmation of Cover (COC)

b. Birth/Death Certificate (CTC)

c. Police Report/ Incident Report (Original)

d. Insured’s & Claimants Valid ID (with Photo and Signature)

e. Legal Supporting Document of claimant/beneficiary

f. Medical Certificate

 

6) Accident or Sickness Emergency Cash Assistance

a. Photocopy Confirmation of Cover (COC)

b. Emergency Expense Benefit Claim Slip (bottom of COC)

c. Medical Certificate

d. Clinical Abstract

e. Insured’s Valid ID (with Photo and Signature)

 

After having a clear idea of the claim requirements, we know that you’re curious about the fine prints. The thing is, Cebuana Lhuillier doesn’t deal with fine prints, we are happy to serve and answer every detail that our customers may inquire about in the long run. To further clarify on the inclusions, we have to mention the exclusions as well:

 

Exclusions:

1. Planned or expected treatments.
2. Treatment or surgery for congenital anomalies.
3. Treatments related to HIV, STD’s, AIDS.
4. Claims caused by alcoholism and/or illegal drugs.
5. Self-inflicted injuries, suicide, attempted threats while sane or insane.
6. Treatment of mental and nervous disorders.
7. Long-term rehabilitation and psychiatric care.
8. Treatment for Obesity, weight reduction, or weight improvement.
9. Chiropractic care, acupuncture, alternative medicine or any experimental procedures.
10. Cosmetics, plastic surgery, dental care, eye and ear examinations.
11. Hazardous and dangerous sports or activities.
12. Any act that violates the law.
13. Murder, assault, brawl or any attempted threat.
14. Losses caused by escort or security service.
15. Voluntary taking of poison, gas, nuclear or radioactive materials.
16. Hostilities or warlike operations
17. Any act of terrorism.

While it may seem like a long and extensive lists, most of these are in accordance with the Philippine Law as well, with hostilities and violence being the main disqualifying factors for the microinsurance itself. Understandably, this is a universally accepted provision, to further prioritize the good, hardworking, citizens of the country. Cebuana Lhuillier has always been in support of the tough, motivated, and law-abiding citizens of the country who can’t afford those pricey insurance premiums, hence why ProtectMax was made specifically for them.

With the clear lists of requirements, you may very well be on your way to applying for ProtectMax. But if you’re still unsure about the other details, please feel free to visit any nearby Cebuana Lhuillier branch. Our staff would be more than happy to answer your questions regarding this brand new Microinsurance service.

Pawnshops are a rich part of Philippine history.  Believe it or not, it can be traced back at least 3,000 years to ancient China, and has been found in the earliest written histories of Greek and Roman civilizations. In 1462 the Franciscans set up the montes pietatis, which granted interest-free loans to the poor, though they were later forced to charge interest to prevent premature exhaustion of their funds. Some scholars say that the practice of pawning was introduced during the days of the Spaniards, when they would allow Chinese traders to enter the Philippine shores in order to conduct their business. This practice has then evolved into the pawning practices of today.

Due to the slow economic growth, Filipinos had turned into pawning more frequently than the usual. Is it any wonder that pawnshops continue to grow in numbers? The Bangko Sentral ng Pilipinas (BSP) said the number of pawnshops across the country reached 17,408. Of these, 6,279 are head offices while the remaining 11,129 are branches. Unsurprisingly, they outmatch and outnumber banks, as a matter of fact, they outnumber all other types of financial institutions regulated by the BSP, including universal and commercial banks, rural banks, and savings and loans associations. Talk about a booming business.

Pawning’s Wide Reach

Open your TV and you’re bound to see a commercial regarding pawnshops and its recent services, perhaps you’d be able to spot one or two within the day. In such case, it’s no wonder that pawnshops have entered Philippine pop culture as well, spearheaded by some of today’s sought after actors and actresses, it’s no wonder that the terrestrial reach of pawnshops have been wider than ever, and we haven’t even scratched the surface yet, as this only pertains to television slots, as the social media platforms of pawnshops are hard at work as well when it comes to making their presence felt.

By this, you can probably say that pawnshops no longer indicate a negative vibe whenever it is brought into discussion. There used to be a time when people would raise their eyebrows whenever they would hear of a neighbor or acquaintance pawning off their items. Nowadays, it is common knowledge that pawnshops provide nothing more than a chance for Filipinos to make ends meet. Of course, not everyone is well off, and as mentioned earlier, the Philippine economy has been stagnant, which is why it is very understandable for Filipinos to turn to pawnshops to hopefully get a fair amount.

 

How do Pawnshops Earn Their Money?

Well, pawnbrokers usually derive income primarily from two or three income streams:

• Interest and Service Charges on money lent

One pawnbroking website has provided an average percentage regarding this format. We would like to clarify, however, that these percentages may vary, as different pawnshops have different percentages in play:

“In comparison to commercial banks and other lending companies, they get their income from interest for every new loan of 1% to 2.5% monthly, and yet they are all liquid. So it is imperative to say that this financial institution earns at this interest rates, how much more for the Pawnshop business averaging a 5% monthly interest rate on every loan plus a collateral – to secure loan payment.”

 

• Profits on sale of unredeemed merchandise

Of course, there are times in which the person pawning off their items would not be able to regain it back to due to limited funds. In such case, it gets sold by the pawnshop. The following is a standardized format for this. Again, percentages may vary among pawnshops:

 

a) The income earned from this sale is from 70%-100% of mark up from the principal amount loaned out.

b) Mobile Phone units – 70% – 100% Mark up per unit for 60 days.

c) Gold Jewelries – 75% – 100% Mark up per item for 120 days.

 

• Profits from ancillary specialty services such as currency exchange, money order sales, and electronic load for mobile phones.

Take note of the phrase “ancillary specialty services.“ Of course, some modern pawnshops do not just deal in pawnbroking, nowadays, they offer various services which tend to the modern Filipino’s needs. Speaking of which..

 

The Modern Pawnshop: What does it have to offer?

Gone are the days in which pawnshops are solely about pawning off items in exchange for cash. Cebuana Lhuillier, for example, upped its ante and showed a clear evolution into their lineup of services. First established in 1988, it is one of the leading and largest non-bank financial services providers in the Philippines with 2,500 branches nationwide. Here are just a few of its current services:

 

1) Money Remittance:

Cebuana Lhuillier’s Pera Padala service is an easy, quick, and safe way to send and receive money within and outside the Philippines. With its wide network and client reach with over 1.5 million global touchpoints and 4,000 domestic partner outlets, Cebuana Lhuillier makes money remittance possible anywhere around the world.

 

2) Microinsurance:

One of Cebuana Lhuillier’s main services, Microinsurance products help Filipinos avail financial services that promise to minimize the impact of distress and misfortune should a disaster or unfavorable event occur. They actually offer more than 20 unique and tailor-fit insurance products, which include but are not limited to TodaCARE, StudentCARE, EmployeeCARE, SecurityCARE, and AutoCARE.

 

3) Micro Savings:

Cebuana Lhuillier Micro Savings aims to provide easier banking access to Filipinos. The product is almost the same with any regular savings account in the Philippines (except for the fact that it is much convenient and accessible than banks) and doesn’t require a maintaining balance. Filipino citizens as young as 7 years old are even qualified to open an account, which can be considered as a “kids savings” or “junior savings” account.

 

A Keen Observation:

Perhaps the biggest question is, why do Filipinos tend to look towards pawnshops first than other means of financial support? After all, Filipinos can just easily loan from other institutions or borrow money from their neighbors. Well, the following reasons may very explain this in detail:

 

1) Accessibility

Pawnshops are all about smooth business flow and transactions. Unlike loaning companies, pawnbrokers take pride in providing a good service and fair appraisal.

 

2) Strictly Business

Borrowing from people you know, such as relatives, neighbors, workmates, etc. may breed some personal animosity when it comes to financials, especially as everyone would like to protect their savings, hence, why people are more comfortable dealing with pawnbrokers, because it’s all business. Nothing more, nothing less.

 

3) No Credit Investigations

Lending companies tend to overdo their investigations most of the time. People do not want to be bothered with questions when they’re desperate for cash, hence, why people prefer pawnshops, not because they’re less strict, but rather, they’re efficiently faster when processing financial matters. No need for additional checks or restrictions.

 

With all of that being said, you may be looking for a pawn shop that would provide you with the most honest service and highest appraisal possible. No worries, as Cebuana Lhuillier has got your back. With their Pawning Service you can never go short in any amount, as they accept an array of items, from jewelry to gadgets, as collaterals. They also lead the pawning industry by offering safety and the highest appraisal rate in the industry in its more than  2,500 branches nationwide. Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

Financial scams – they are everywhere! Banking has been a part of people’s lives since 2000 BC, making its presence known in Assyria, India and Sumeria. Nowadays, banking itself has become somewhat of a lifestyle phenomenon, which has taken over a minimal, yet very vital part of everyone’s daily routines. While there may be checks and balances put into place to ensure that all bank accounts are kept safe and well-taken care of, there are still some who are proficient enough in breaking such benchmarks in order to take advantage of innocent people. Scammers are evolving every day, adjusting to the efficiency of bank securities and policies, in the hopes of luring unsuspecting victims to their modus operandi.

According to Bangko Sentral ng Pilipinas (BSP), which is the central bank of the Republic of the Philippines, in its 2017 Financial Inclusion Survey (FIS), the central bank announced that only an estimated 15.8 million adult Filipinos, or 22.6 percent, have bank accounts, while an approximate 52.8 million, or 77.4 percent, remain unbanked. 11.5 percent of them are in the formal banking sector, around 8.1 percent are in non-government microfinance organizations, 2.9 percent are in cooperatives, and 0.3 percent are in non-stock savings and loan associations. Only 1.3 percent of adults have electronic (e-money) accounts. The survey took into account how one person may have several accounts on different platforms.

Now, with all of those numbers in mind, just imagine how much a scammer would take home in tow after a successful scam. The numbers would reach into the thousands, making it somewhat of an amazing feat, albeit a very illegal one. In such case, it is the responsibility of each individual to always be vigilant during their transactions, to always stay alert and be one step ahead of scammers all the time. Only through proper care and precautions would we be able to beat these wrongdoers, and beat them we shall. But in order to do that, we should first identify their strategies, their targets, and possibly their motives. Here are a few examples of banking scams and how we may best avoid falling victim to them:

1)Bank Transfer Scams

You may describe this as a modern take on the old switcheroo trick, varying in examples, yet equally clever and risky to fall victim to. Here are its types:

 

a) Phone Bank Transfer Scam

Simply put, the scammer will try to get you to transfer money out of your account. According to a website which deals in banking security:

“The way this works is that you’ll get a phone call from someone claiming to be from your bank, alerting you to a problem within your account. This will normally be something security related, such as telling you someone is accessing your account illegally, or has stolen your identity. Their solution will be to ask you to transfer all the money into a ‘safe account’ until the problem is solved. The problem is, nobody is trying to access your account and you’re transferring money directly to the scammers. The money is then transferred very quickly to other accounts around the world.”

b) Internet Bank Transfer Scam

Nowadays, this known as phishing. Through suspicious e-mails, perpetrators may install spyware on your computer to steal your information.

 

“Others might try to take control of your computer remotely, by telling you there is an issue with your internet connection or you have a virus. Another tactic is to tell you you’re due a refund or compensation, but you’ve been sent too much. You’ll then be asked to transfer back the difference.”

 

How do you avoid them?

Here’s the thing, banks will never ask for your personal information, either through phone or through e-mails. Of course, over the counter transactions are way different when it comes to this policy, but that’s exactly the point, bank personnel will ask for your information “face-to-face” for verifications purposes, unlike scammers who would prefer to ask for your private information while being anonymous.

Aside from this, banks will never, ever ask for your PIN. That is one of the most crucial information a client may have, hence why it should be kept secret and safe at all times. You should hang up the phone or delete suspicious looking e-mails, overall.

 

2) Bank Card Scams

This modus operandi involves the scammers getting a hold of your card. They do not even need to keep it for a long time, card skimming or the process of copying your card details is common nowadays, especially for those who are always using their cards to pay for everything.

 

a) Through Direct Contact with the Card

One thing’s for sure, the most common way to get your card details is when you’re shopping online. There are unsecured websites which only say http rather than https in their website address, which can be attacked and filled with spyware, thus infecting your computer, so scammers can see everything you’re doing online.

Sometimes, crooks will even go as far as to steal your credit or debit cards while they’re in their envelopes. You will then get a phone call from the person with your card asking you to confirm a few details which allows them to start using it. By the time you realize what’s happened, your account could have been emptied, or your credit card maxed out.

 

b) By Skimming the Card

Scammers will sometimes use ATM and cash machines to clone your bank card so they can use it to steal your identity. A skimming device is also used in this, being attached to the card slot of ATMs, on other instances, they’ll just install miniature cameras attached so they can see your card number and PIN. One major workaround is to cover the keypad whenever you enter your PIN.

 

How do you avoid them?

First of all, never open or answer suspicious-looking e-mails. There are always red flags, but you’re sure to spot them all in one go. Immediately delete these kinds of e-mails. You should also update your antivirus, just to make sure that no phishing software or malware would get in your PC. You may also avoid visiting websites which only have http in the address rather than https. You should also prevent using public Wi-Fi in coffee shops or shopping malls to shop online or use online in banking.

 

Red Flags within a Strange E-mail

Remember when we said scammers can use e-mails to trick you into providing them with your information? If you’re still unsure of what to look out for, here are a few major examples:

 

• It instructs you to click a link in the message and to log in using your online banking details.
• It has a very generic composition. First, what do they call you? Scammers will generally use a generic welcome, such as Dear Sir/ Madam or valued customer. Real emails will address you by your name.
• Look out for the e-mail address. Emails from scammers will come from an address which is either just a series of letters and numbers, or have a spelling mistake.

 

Now that you know what to lookout for, always remember to approach your local bank and its trusted personnel if ever you were to receive such suspicious e-mails or worse, have already fallen victim to one of the mentioned scams. Remember, being vigilant and alert is the key to beating these scammers to the punch. Be always ten steps ahead of them.

With all of that being said, you’re probably looking to open a bank account with a name and service that you can trust. Look no further than Cebuana Lhuiller’s Micro Savings! Initially offered in our Rural Bank branches, it is now available through our entire Cebuana Lhuillier branch networks. Simply put, you can use your 24K Plus and 4C Cards at any of our Cebuana Lhuillier Pawnshop and Bank Branches in order to withdraw your savings. With a minimum deposit amount of only P50 and no minimum maintaining balance, it’s incredibly easy to apply for one. You can even check your savings amount via our SMS service, reliable and ready to serve you 24/7. Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

 

Save atleast P500 and get a chance to win P5,000 on our #KaCebuanaIponaryo challenge more info at https://www.cebuanalhuillier.com/ka-cebuana-iponaryo-contest/, this is open to all Micro Savings account holders.