From POGOs to scam hubs
The Philippines may have banned offshore gaming, but it doesn’t mean that the people behind it, especially the Chinese, are no longer around.
Perhaps this is one negative result of the ban – an iteration, or rebirth, that was a lot worse.
No less than Chinese Ambassador Jing Quan confirmed this during a recent meeting with executives and editors of The STAR, led by our president and CEO Miguel Belmonte.
The meeting was not about POGOs, but I took the chance to ask Ambassador Jing if there were any developments related to the ban on POGOs, which took effect in late 2024.
He said that some POGO operations still exist, but these have morphed into scam hubs. The Chinese embassy, he said, continuously works with local authorities to crack down on perpetrators of these scams and make sure they are brought to justice.
It’s not just Chinese nationals who are involved. There are other nationalities from Asia.
Just recently, the National Bureau of Investigation (NBI) dismantled an alleged online scam hub in Olongapo City, securing around 200 Vietnamese nationals.
Authorities seized computers, mobile phones and documents used in the operation.
NBI Director Melvin Matibag said the raid was just one step.
Investigators would also trace the money moving through the operation and pursue those who provided bank accounts and e-wallets for the transactions.
The NBI, according to The STAR’s report, is working with the Anti-Money Laundering Council and concerned financial institutions to identify and freeze accounts allegedly used by the hub. The investigation into its operators and foreign links is ongoing.
Unfortunately, the scams persist partly because some of these foreign nationals are able to enter the Philippines visa-free.
Justice Undersecretary Nicholas Felix Ty, for instance, said that some of the foreigners, mostly Chinese nationals apprehended in the Zamboanga Sibugay raid earlier this month, entered the Philippines under a visa-free arrangement.
“We cannot deny that this is a privilege we granted to Chinese tourists and that, to some extent, it has been exploited, contributing to this problem,” Ty said during a recent media briefing.
The Department of Foreign Affairs restored visa-free access for Chinese visitors on Jan. 16, allowing visits of up to 14 days strictly for tourism or business purposes.
Perhaps it’s time to revoke this privilege because it is being abused by unscrupulous Chinese nationals.
The arrangement is subject to review before it expires a year after its implementation, according to news reports.
These Chinese nationals recruited to work in scam hubs target fellow Chinese citizens because it is easier for them, given that there is no language barrier, Ambassador Jing said.
He noted that, indeed, the visa-free privilege is being used by the scam perpetrators.
Some countries in Southeast Asia have been cracking down on scammers, which is why some of them are moving to the Philippines, taking advantage of the visa-free option, he said.
Some scams are small-time operations, while others are sophisticated, but big or small, they usually operate in connivance with local partners.
The scams are varied – from credit card fraud and SMS scams to romance scams – targeting not just Filipinos but other nationalities.
This is the reason, Ambassador Jing said, why the embassy is closely working with local authorities – to really put an end to such scam operations.
A few days ago, I was among the panelists in a fireside chat about scams organized by tech company IDfy Philippines as it launched “Chaos in Cavite,” a graphic novel aimed to educate the public and the financial industry on the mechanics of money mule networks and digital fraud.
The chat discussed how these scams succeed with the help of money mules, or those who move the money stolen through these fraudulent activities.
In a separate paper released with CIBI Information Inc. titled “Mule hunting: Are we chasing ghosts?” IDfy said the Philippines risks losing up to P603 billion annually, or nearly three percent of gross domestic product, to fraud perpetrated through mule accounts.
Crucially, with fewer than two percent of cybercrimes formally reported, mule accounts frequently remain active and reusable for months, IDfy said.
Unless we crack down on these operations and toughen up against the perpetrators and their Filipino partners in crime, Manila may end up being the region’s scam capital.
Aside from scams, another concern that has emerged in the wake of the POGO ban is the so-called Philippine Inland Gaming Operators (PIGOs), which offer online gaming targeting players in the Philippines.
It’s ironic, said property consultant David Leechiu, that while the Philippines banned POGOs – which target overseas players – it allows PIGOs, which have, unfortunately, hooked Filipinos on online gambling.
Leechiu was among those who strongly supported POGOs because of the industry’s ripple effect on the economy – from boosting office and residential space to supporting consumer spending.
PIGOs have no such similar trickle-down effect on the economy.
Through these PIGOs, industry sources said, Filipinos, especially the poorest of the poor, have gotten hooked on online gambling, betting whatever earnings they make in a day, including the occasional ayuda.
Sen. Chiz Escudero said last year that this new industry needs to be scrutinized, saying that online bets have reached a trillion.
We banned POGOs supposedly because of the social cost. But their successors are proving to be worse.
Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.
abtestabtest When BBM says don’t panic... By EYES WIDE OPEN | By Iris Gonzales | 1 day ago The peso’s slide is heart-attack level. But President Marcos said we should not be alarmed. Opinion Collapse By FIRST PERSON | By Alex Magno | 1 day ago Suddenly, “depreciation” seems too kind a word. The peso is simply collapsing. Opinion Clearing Imeldific By SKETCHES | By Ana Marie Pamintuan | 3 hours ago In 2003, the Supreme Court ruled that Ferdinand and Imelda Marcos’ legitimate income from their combined salaries during their 20-year rule amounted to only P2.3 million ($304,372 at the time). Opinion Relevance By VIRTUAL REALITY | By Tony Lopez | 1 day ago At the 175th anniversary gala dinner of the country’s oldest financial institution, Bank of the Philippine Islands, chairman Jaime Augusto Zobel de Ayala, 69, and president TG Limcaoco, 63, defined what it... Opinion Latest More in Opinion EDITORIAL — Bato, time’s up Fight not fright The pistis shift Palace, House collude in P1-trillion pork abtest From practical to smart solutions By COMMONSENSE | By Marichu Villanueva | 3 hours ago Every activity, no matter how trivial it may seem, matters a lot to help stave off looming water crisis. Opinion EDITORIAL — Early learning crisis 1 day ago Mass promotions of students and lowering of grading standards are being abolished. The best teachers are being assigned to Grades 1 to 3 in the public school system. Opinion All Saints’ & All Souls’ Days By BREAKTHROUGH | By Elfren S. Cruz | 1 day ago According to the book “Catechism for Filipino Catholics,” Filipinos have traditionally manifested their deep faith in an afterlife with prayers for our departed loved ones and our devotion to the sa... Opinion Asean energy policy needs more youth voices By POINT OF VIEW | By Ardhi Arsala Rahmani | 1 day ago The energy ministers of the 11 ASEAN member-states convened in Manila in early October for the 44th ASEAN Ministers on Energy Meeting, but the outcome still lacks mentions and concrete institutional follow-through... Opinion EDITORIAL — Expectations from a reshuffle 2 days ago One outcome is expected when there are changes in the Cabinet: better services from the government. Opinion Recommended Marcos attends Michelin Guide 2027 ceremony October 29, 2026 - 5:30pm Marcos is the first sitting head of state in history to attend a Michelin Guide restaurant unveiling. OpinionBONGBONG MARCOSMICHELIN SC seeks Senate, House comments before acting on impeachment vote threshold plea October 29, 2026 - 1:34pm The High Court instead has ordered the Senate and the House of Representatives to answer their petition first, according to an en banc resolution dated October 14. OpinionSARA DUTERTE'S IMPEACHMENTSENATESUPREME COURT New NLEX C5 Northlink section toll-free until year-end October 29, 2026 - 11:14am Marcos announces free passage on the newly opened NLEX C5 Northlink section through 2026. OpinionBONGBONG MARCOSC5INFRASTRUCTURE Prosecution to defense: Don’t delay impeach trial October 29, 2026 - 12:00am Lawyers of Vice President Sara Duterte should not engage in delaying tactics in presenting her defense before the Senate impeachment court, nor should they employ any filibuster methods to drag the case even fu...r OpinionSARASARA DUTERTE Aplasca files reply to direct assault rap October 29, 2026 - 12:00am Former Senate sergeant-at-arms Mao Aplasca has filed his counter-affidavit on the direct assault complaint filed against him over the May 13 Senate shooting. OpinionAPLASCAMAO next Recommended Marcos attends Michelin Guide 2027 ceremony Marcos is the first sitting head of state in history to attend a Michelin Guide restaurant unveiling. 9 hours ago BONGBONG MARCOS MICHELIN SC seeks Senate, House comments before acting on impeachment vote threshold plea The High Court instead has ordered the Senate and the House of Representatives to answer their petition first, according to an en banc resolution dated October 14. 13 hours ago SARA DUTERTE'S IMPEACHMENT SENATE SUPREME COURT New NLEX C5 Northlink section toll-free until year-end Marcos announces free passage on the newly opened NLEX C5 Northlink section through 2026. 16 hours ago BONGBONG MARCOS C5 INFRASTRUCTURE Prosecution to defense: Don’t delay impeach trial Lawyers of Vice President Sara Duterte should not engage in delaying tactics in presenting her defense before the Senate impeachment court, nor should they employ any filibuster methods to drag the case even further. 1 day ago SARA SARA DUTERTE Aplasca files reply to direct assault rap Former Senate sergeant-at-arms Mao Aplasca has filed his counter-affidavit on the direct assault complaint filed against him over the May 13 Senate shooting. 1 day ago APLASCA MAO OK Are you sure you want to log out? Yes No X Login Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!
