SEC shifts to platform-level action against online scams

THE Securities and Exchange Commission (SEC) said it is pursuing a strategy that targets platforms hosting or facilitating scams to remove fraudulent websites directly from services such as TikTok and Facebook.

“We’re trying to enlist the help of ByteDance, Facebook, all of them because our strategy now is to go directly to the platforms so that it will take down the websites themselves,” SEC Commissioner Rogelio V. Quevedo told reporters on the sidelines of an event.

He said challenges with SIM-card registration partly led the commission to adopt platform-level measures.

He noted that, in the past, the SEC relied on cellphones for enforcement. However, because SIM cards could be replaced quickly, a single person or entity could register multiple cards, limiting the measure’s effectiveness.

“So now, we are going directly [to the platform]. This is an example with TikTok. In the next few days, with Facebook, Viber, and Messenger, we aim to take down the websites themselves,” he said.

The commission earlier partnered with TikTok to produce #ThinkTwice videos to teach users how to spot scams, verify sources, and protect their finances.

Mr. Quevedo said the SEC plans to extend this initiative to other platforms by the end of the first quarter.

“You know it takes time. But hopefully, we can do it with all the other platforms by the end of the first quarter. We started with ByteDance, and we will be using the same scheme,” he said. — Alexandria Grace C. Magno