BSP and PNP-HPG Warn the Public Against Auto Loan Scams Rizal Commercial Banking Corporation Banko Sentral ng Pilipinas (BSP) and the Philippine National Police Highway Highway Patrol Group (PNP-HPG) warn the public against fraudulent vehicle loan schemes. These crimes are committed by car theft syndicates via various modi operandi. They use fake plate numbers, conduction stickers, employment certificates, and identification cards. Sometimes, they resort to identity theft by using a real person’s information with a different photo. The Scammers’ Modi Operandi Besides gun and knife-point intimidations, car theft syndicates are now using various schemes to fool vehicle owners, car dealers, and banks. BSP and PNP-HPG disclosed the details of the various methods used by the car theft syndicates. In a Pasalo-Benta scam, a car thief buys a vehicle from a seller. The agreement would have the thief assume responsibility for the seller’s auto loan. Of course, the thief has no intention to do so and will instead sell the vehicle to a buyer using falsified documents for a profit. The bank providing the auto loan still possesses the vehicle’s original certificates of registration and may still recover it with the assistance of law enforcement agencies. The buyer, however, may not recover their money as they are holding falsified documents. There is an even more harmful version of this scam. A Pasalo-Benta-Bawi scam involves everything done in a Pasalo-Benta scam. However, the car thief also installs a GPS tracker into the vehicle before selling it. They then report to authorities and claim that they were the victim of a Pasalo-Benta scam committed by the buyer, allowing the thief to reclaim the vehicle. The Labas-Casa-Talon scam is similar to Pasalo-Benta. The scammer convinces a victim to use their name for a car loan. They tell the victim that the vehicle will be used for business purposes, that they will pay for the loan, and will hand the vehicle over to the victim once the loan is paid. In truth, the scammer pawns off or sells the vehicle. The more elaborate version of this scam has the scammer convincing a company’s human resource personnel to pose as a contact. In return for affirming the scammer’s status as an employee during a credit investigation, the contact gets Php15,000 to Php30,000 upon the release of the vehicle. The scammer will then rent a condominium, pose as its owner during the credit investigation, and present fake documents. The contact, meanwhile, confirms the employment status of the scammer. The fake documents will be presented during the vehicle’s release. At that point, the scammer would have swindled the bank and the car dealer into handing over a vehicle to a non-existent individual. Call for Vigilance The PNP-HPG warns the public to be on the lookout for these scams and to spread information regarding them. Meanwhile, the BSP reminded banks to strengthen the implementation of strict regulations, verification procedures, transaction monitoring, and anti-laundering training. Consumers are encouraged to contact the PNP-HPG for assistance should they become aware of a car theft syndicate. Banks must also report any suspicious transactions. References: https://business.inquirer.net/331639/bsp-warns-public-vs-growing-prevalence-of- auto-loan-scams https://www.rappler.com/business/bangko-sentral-pilipinas-warns-pasalo-benta-auto- loan-scam/ https://www.rcbc.com/auto-loans https://news.abs-cbn.com/business/09/29/21/bsp-warns-public-vs-auto-loan-scams https://www.manilatimes.net/2021/01/28/latest-stories/breakingnews/public-warned- vs-new-car-theft-scams/833890