Understanding ‘guerrilla scam operations’ by POGOs in Philippines

Sankunni K November 21, 2024

SiGMA news

The Philippines is grappling with an alarming evolution in criminal activity as the government phases out Philippine Offshore Gaming Operators (POGOs). Following President Ferdinand Marcos Jr.’s directive to ban POGOs by December 31, 2024, an uptick in “guerrilla scam operations” has been reported. These covert schemes, often disguised as legitimate establishments like restaurants or resorts, are stepping into the void left by POGOs. These new operations are decentralised, mobile, and more difficult to identify, complicating law enforcement efforts.

What are guerrilla scam operations?

Unlike traditional POGOs, guerrilla scam operations work without a regulatory framework. They often function in small hubs that frequently relocate to evade detection. Criminal networks behind these scams exploit technology and operate anonymously, making them harder to trace. Some of their key activities include human trafficking, financial fraud, and online scams targeting local and international victims.

How are they operating?

Authorities report that these scam hubs often use residential areas, subdivisions, and even high-rise buildings as operational bases. According to (PNP) officials, many of these setups involve locals familiar with the area, enabling scammers to blend in more easily. This decentralised, guerrilla-style approach avoids large-scale visibility, which was a hallmark of traditional POGO operations.

Government action and challenges

The crackdown on POGOs was driven by high-profile criminal cases linked to the industry, including kidnapping and trafficking. To tackle the emerging guerrilla scams, the government has deployed various agencies:
PNP and NBI: Conduct regular raids and coordinate with local governments to identify illegal establishments.
Cybercrime Investigation and Coordinating Center (CICC): Uses advanced technology and public reporting hotlines to trace scam hubs. As of late 2024, the CICC reported dismantling 11 scam hubs in cooperation with other agencies.

The role of local governments

Interior Secretary Juanito Victor Remulla has urged local government units (LGUs) to maintain vigilance. This includes frequent inspections of businesses even after issuing permits. Recent raids in Lapu-Lapu City uncovered a scam hub masquerading as a hotel and restaurant, highlighting the importance of proactive LGU engagement.

Broader implications

The rise of guerrilla scams is a troubling indicator of the adaptability of criminal networks in the absence of regulatory oversight. With POGOs gone, these illicit operations could worsen the socio-economic issues already associated with the gambling industry. If unchecked, they risk undermining public trust and exposing communities to greater harm.

Looking ahead

As the December 31 deadline approaches, the Philippine government faces mounting pressure to intensify its crackdown. President Marcos’ administration hopes to prevent the proliferation of new schemes through stricter enforcement and enhanced technological capabilities. However, long-term solutions will require addressing systemic vulnerabilities that enable such operations to flourish.