Crackdown on Recent Scam Hubs Lead to Multiple Arrests in the Philippines

Following recent crackdown operations on several scam hubs in the Philippines, numerous individuals, both local and foreign, have been arrested for their involvement in cyber-related fraud activities. Reports indicate that various groups, including Filipinos, Chinese nationals, and other foreigners were apprehended in scam hubs across Cavite, Paranaque, and Pampanga.  These hubs were reportedly engaged in several criminal activities and financial fraud operations to deceive victims into disclosing banking credentials and other sensitive information.  

Cavite 

On August 23, 2024, the Philippine National Police Anti-Cybercrime Group (PNP-ACG) arrested 19 suspects, including two well-known vloggers, in Imus, Cavite, reportedly involved in vishing (voice phishing) scams. According to PNP-ACG Director Brigadier General Ronnie Cariaga, verified intelligence sources acquired from another scam hub in Cavite prompted the crackdown of this hub in Imus. Prior to this operation, the PNP had already shut down two other scam hubs in Cavite – specifically in General Trias and Trece Martires city – since July 2024, which were also engaged in similar vishing scams.    

The National Bureau of Investigation (NBI) was also involved in similar crackdown operations in Cavite. On August 9, 2024, the NBI apprehended multiple suspects including 24 Filipinos, 3 Chinese, and 2 Malaysian nationals, at a scam hub in Grand Centennial Homes, Kawit, Cavite. According to the NBI, fraudulent activities in this hub include romance scams, investment fraud, crypto scams, and impersonation schemes where the foreigners led the operation while the Filipinos manned the fraudulent operations.  

Parañaque 

On August 22, 2024, the NBI raided an online scam hub on the 9th floor of a private building in Barangay Baclaran, Parañaque, resulting in the arrest of 414 foreign and Filipino suspects. The hub, which claimed to operate as a licensed Philippine Offshore Gaming Operator (POGO), was involved in cryptocurrency and love scams, allegedly hiring female customer service representatives who posed as models to lure victims into investing in fraudulent schemes.  

Earlier this year, on May 2, 2024, authorities arrested 10 Chinese nationals and 26 Filipinos in a village in Parañaque City following residents’ complaints regarding ongoing illegal activities, frequent police operations in the area, and violations of the three-story building regulation. Residents also noted that this was not the first POGO-related raid in their area. According to the Philippine Amusement and Gaming Corporation (PAGCOR), the arrested individuals were likely connected to the POGO hub previously raided in Bamban, Tarlac. 

Pampanga 

Six Chinese nationals involved in cyber-related scams were arrested in an operation by the NBI on August 16, 2024, in Angeles City, Pampanga. According to the NBI, several desktop computers, mobile phones, SIM cards, customer ledgers, and scripts used for romance scams, crypto investment schemes, and other fraudulent scams were discovered in the raid.  

Earlier this year, on June 4, 2024, the Presidential Anti-Organized Crime Commission (PAOCC), Criminal Investigation and Detection Group, and police units raided Lucky South 99 in Porac, Pampanga – a compound operating as a POGO hub. The PAOCC disclosed that the site was being used for illegal activities such as torture, human trafficking, sex trafficking, kidnapping, and various online fraud schemes. According to reports, the hub initially applied as a Business Processing Outsourcing (BPO) company in 2019 and renewed into a POGO hub in 2021.  

Modus Operandi of Scam Hubs

These scam hubs operate under various criminal activities, including financial fraud scams that employ various social engineering techniques aimed at manipulating victims into providing access to their accounts or sensitive financial information. Fraudulent activities reported from these scam hubs include: 

• Phishing (Spear Phishing, Vishing or Voice Phishing, Smishing or SMS Phishing) 

• Romance Scams 

• Investment Scams 

• Impersonation 

• Scareware 

Scam Hubs, Linked to POGO Operations?

Many observers link POGOs to illicit activities, and some scam hubs operate under the guise of POGO hubs, raising concerns about the possibility of POGOs harboring or facilitating various criminal activities. However, analysts note that while some of the mentioned scam hubs overlap with areas known for hosting POGO hub activities such as Cavite and Parañaque, the link between these industries remains speculative due to lack of conclusive evidence.  

The PAOCC has reported monitoring over 50 POGO hubs in the Philippines, including some in the Multinational Village in Parañaque and the so-called “POGO Island” in Kawit, Cavite. Local communities have raised concerns over the number of Chinese nationals in these areas, accusing them of being sleeper agents for the People’s Liberation Army (PLA) of China. The PAOCC also suspects that Chinese workers are being moved between various POGO hubs across the country. According to the PAOCC, only 43 of the 58 POGOs operating in the country are licensed.  

There have also been concerns regarding a few POGO hubs near Philippine military bases. These locations have been referred to as “trojan horses” due to their proximity to key military bases in the Philippines:  

• Former resort turned POGO hub in Kawit, Cavite, and Sangley Point in Cavite City, a former United States military base and currently the location of a Philippine naval and air base   

• Chinese casinos and POGO sites near Armed Forces of the Philippines (AFP) and Philippine National Police (PNP) headquarters, both in Quezon City  

• Philippine Army headquarters in Fort Bonifacio and POGO hubs in McKinley Hills and Mckinley West in Taguig City  

• Philippine Navy headquarters in Manila near the Mall of Asia complex in Pasay City 

Nonetheless, PSA notes that the security risks posed by Chinese “tech” enclaves and POGO hubs are more related to the organized crime commonly linked to or associated with these entities.