MANILA, PHILIPPINES: Authorities in the Philippines are on high alert as experts warn that scam hubs connected to banned offshore gaming operators could become a permanent problem if law enforcement does not take more decisive action.
The warning comes after the recent arrest of 450 individuals, including five Chinese nationals believed to be the masterminds, in a suspected scam hub in Manila on Feb 20. This incident sheds light on an expanding network of illicit activities targeting victims in China and India, with operations revolving around sports betting and fraudulent investment schemes.
A growing threat – Scam hubs and their impact
According to the latest South China Morning Post report, the operation in question, located in a Manila building, was identified as a potential scam centre. Authorities have tied it to the ongoing issue of illegal online gaming operations, even after a ban on Philippine Offshore Gaming Operators (POGOs) was implemented by President Ferdinand Marcos Jr. in Jul 2024. The network allegedly ran scams targeting international victims, raising concerns about the persistence of these illegal hubs. The recent arrests, which included 137 Chinese nationals, point to the involvement of foreign nationals in such illicit operations.
Chester Cabalza, president of the International Development and Security Cooperation, highlighted the risks of these scam hubs becoming an entrenched “cottage industry” within Metro Manila if left unchecked. He emphasized the need to dismantle the network fully to prevent it from spreading further and contributing to various social problems, including human trafficking and prostitution.
Struggles to enforce the ban
Despite a formal ban on POGOs in the Philippines, efforts to eliminate these operations have been slow, with authorities continuing to target new locations for scams that have shifted from major cities to more discreet areas in provincial regions. In a recent statement, Philippine Anti-Organized Crime Commission (PAOCC) head Gilbert Cruz assured the public that the government was committed to wiping out all illegal POGO-related activities by the end of 2025. However, experts caution that it may take more consistent, coordinated efforts to achieve this goal.
The Philippines has faced ongoing challenges in fully eradicating POGO operations, which have gone underground after the ban. Cruz pointed out that over 11,000 foreign workers connected to POGO operations remain in the country, further complicating the efforts to combat illegal activities linked to these networks.
POGO-related crimes and political concerns
The ramifications of illegal POGO operations are far-reaching. Analysts are concerned that the money generated by these scams could be funnelled into local politics, with some suspecting that criminal syndicates are using illicit funds to support certain candidates who could shield their operations. The case of Alice Guo, a dismissed mayor with alleged ties to a POGO operation, raised concerns over the potential for “dirty money” to influence political landscapes.
Julio Amador, founder of the non-profit FACTS Asia, warned that a sustained law enforcement operation is necessary to address the problem of POGO-linked crimes. He stressed the importance of the Philippines continuing its efforts to combat money laundering, particularly after the country’s recent exit from the Financial Action Task Force’s grey list, which monitors such illegal activities.
Legislation and law enforcement cooperation
Experts agree that to tackle the POGO problem fully; the government needs to pass legislation that criminalises involvement in such illegal operations beyond the executive order currently in place. While Marcos Jr.’s ban was a step in the right direction, analysts believe that stronger laws are needed to hold those accountable for enabling POGO networks.
In the meantime, effective and coordinated law enforcement remains critical. Amador and Cabalza both highlighted the importance of ongoing collaboration between law enforcement agencies to gather intelligence and carry out thorough investigations. Only through sustained and methodical actions will the Philippines be able to combat the growing threat posed by illegal POGO networks and prevent them from becoming a lasting issue.