Philippine authorities continue to struggle against online scams due to supposed issues with the SIM Registration Act despite ongoing crackdowns, the Presidential Anti-Organized Crime Commission (PAOCC) recognized.

PAOCC Executive Director Undersecretary Gilbert Cruz said this after credit rating firm Moody’s reported that the number of Filipino entities and people with potential links to romance scams saw a rapid surge to 45 in 2024 versus 10 in 2023.

The Philippines ranked seventh globally for the highest number of entities and people with potential ties to romance scams, Moody's added.

In a media forum on Saturday, Feb. 15, Cruz recognized that the Philippines has become a hotspot for cyber scams, particularly romance scams and financial fraud.

"Iyong mga nakakausap ko pong mga foreign counterparts natin, law enforcement counterpart, every time they do an investigation, lumalabas ho na iyong mga scamming activities o iyong source ng scamming ay nanggaling po sa Pilipinas (When I talk to our foreign law enforcement counterparts, every time they do an investigation, they always find out that the scamming activities, or its source, are from the Philippines)," he said.

"Kapag sa international scene ho, kapag naimbitahan po ako doon o kapag uma-attend po ako ng mga seminars, forums o kaya meeting, it’s always… sasabihin nila, 'We have victims here in our country and upon tracing, nakita namin na it’s coming sa inyo (Every time I attend global seminars or forums, they tell us, 'We have victims in our country and traced these scams back to the Philippines'),'" he added.

One of the problems, according to Cruz, is the SIM Registration Act which supposedly allows people to register using fake details.

"Iyong SIM card registration natin kahit sino, kahit anong address ang ilagay mo pwede, kahit anong mukha ang ilagay mo pwede. So, sino ang hahabulin ng imbestigador? Blangko ‘di ba (With our SIM card registration, you can use any address or face. So, who will the investigators go after? They're stuck)," he said.

"So, iyon po iyong problema natin dito. Iyong mga krimen, online crimes na nangyayari nag-i-emanate po iyan kasi alam po nila na makakalusot sila dahil sa SIM card registration. Fake iyong ginagamit nila, mga bogus names, bogus address (So that's our problem. The online crimes are happening because they know they could get away because of the SIM card registration. They use fake names and addresses)," he added.

Love scam

Cruz said one of the most alarming scams is the so-called "love scam" where victims, usually retired males over 35 years old with businesses, are manipulated into sending money under false pretenses using manuals supposedly made by psychologists and psychiatrists that they paid.

He explained that the scammers have folders of pictures of beautiful women and study their victims' social media behavior. The process takes seven days maximum.

"Kapag na-in love na si sir doon... I-introduce si sir sa cryptocurrency. Kapag na-introduce na siya at nakapagbigay na siya, kinabukasan wala na si Ana. Ang problema ngayon sinong hahabulin mo (Once Sir falls in love with her... they introduce him to cryptocurrency. After he's been introduced and has given money, the next day, Ana is gone. The problem now is, who are you going to chase after)?" Cruz said, using a fake identity as an example.

AI-generated harassment

Fraudulent online lending apps are another scam that prey on Filipinos in financial distress. Cruz said victims who fail to repay their loans are subjected to extreme harassment, including death threats and blackmail using artificial intelligence (AI)-generated nude photos.

"Ginawa sila noong AI photos na naka-nude sila, na may kasama silang lalaki ganoon. Ganoon po eh, kaya nilang gawin sa AI iyon. So, let’s be careful of iyong mga online lending apps na iyan (They made AI-generated nude photos where they were with men. They can make those through AI so let's be careful about those online lending apps)," he said.

"Mayroon po nagpakamatay... Iyong sa inyo sir, nabaliw. Kasi ho talaga grabe iyong harassment (Some committed suicide while some had gone insane because of the extreme harassment)," he lamented.

Cruz believes these lending apps stemmed from Philippine offshore gaming operators. He shared some red flags regarding online lending apps, including no collateral and getting your loan in a few hours.

"Kapag mabilis ho maaprubahan, mabilis din kayong maloloko at saka iyong akala ninyo nasolusyunan ninyo iyong problema ninyo dahil kailangan ninyo ng pera, lalong madadagdagan ang problema ninyo (If your application is approved quickly, you'll also be fooled quickly. The solution to your money problems will become another problem)," he said.

"It’s not a solution, iyong mangutang dito sa mga online (Getting loans online is not a solution)," he added.

The PAOCC also raised privacy issues regarding online lending apps. He said these apps require access to personal contacts and photo galleries, which can later be used for harassment or blackmail.

According to Cruz, the PAOCC has shut down over 60 scam lending apps.

Torture videos 

Meanwhile, a recent raid of a Philippine Offshore Gaming Operator (POGO) dorm facility in Pasay City led to the discovery of 12 torture videos.

Cruz said they rescued 34 Indonesians being held by four Chinese nationals.

He shared that when the team entered the condo unit of one of the Chinese kidnappers, they rescued a victim who was handcuffed and was being tortured.

“And then, when we looked at his cellphone, nakakita pa kami ng mga torture videos. Parang sa kanila, parang laruan na lang iyong tinu-torture (we saw torture videos. For them, torture is like a game),” the official lamented.

In one of the videos, a Chinese woman whose photo showed her in a China’s People’s Liberation Army (PLA) uniform, was also seen tasering another woman in her genitals.

Another showed a man with a gun pointed at him.

Cruz said that POGO operators have become brazen that they now have army recruits to handle the torturing of these victims when in the past, they hired Filipinos to do the killing, kidnapping, and torture.

“Pero ngayon ho, sila-sila na lang (Now, it’s just them). They have their own enforcers,” he shared.

 “Ito, nandito sa atin iyong isang Chinese na mabalasik, na POGO boss, na siyang pasimuno sa pangingidnap (The ruthless Chinese are here now, the POGO boss, the instigator of kidnapping),” the PAOCC official added.

Cruz disclosed that kidnapping charges will be filed against those in the condo unit, while those involved in the torture will also face charges of serious physical injuries.

So far, the PAOCC is still monitoring small-scale POGO operators who have scaled down their operations but continue to exist despite a ban imposed by President Marcos.

These POGO operators, Cruz said, have the “best resources”—from guns to cars to condo units.

The President ordered the closure of all POGOs during his 2024 State of the Nation Address (SONA), pointing out their criminal activities, such as human trafficking and kidnapping.

But 8,000 POGO workers are still up for deportation after they failed to leave the country despite the Dec. 31, 2024 deadline. (With Raymund Antonio)