Senator Sounds Alarm on Ex-POGO Workers Setting Up Own Firms for Online Scams

October 7, 2024 Philippines Crime & Legal

Former employees of Philippine Offshore Gaming Operators (POGOs) are reportedly transitioning into the world of online fraud and scamming. This alarming trend has caught the attention of Senator Sherwin Gatchalian, who raised concerns about criminal practices being perpetuated by locals who learned from their former Chinese employers.

Gatchalian revealed that many individuals who once held significant roles within large POGO hubs are now setting up smaller companies to engage in fraudulent activities. These new ventures often operate under the radar, using ordinary commercial spaces to avoid scrutiny from law enforcement agencies.

In a specific incident, authorities raided a POGO called 3D Analyzer Information Technologies Inc. located just meters away from the Senate building in Pasay City. The raid underscored the emergence of local operators who had seemingly adopted the POGO model for their own scamming endeavors.

“I fear that some of our own countrymen, who saw that scamming is very profitable, are now doing the scamming activities themselves,” Gatchalian told the “Usapang Senado” program on radio dwIZ. He described this situation by saying: “This is ‘technology transfer’ in an evil way. A criminal activity has been ‘transferred’ to the locals.”

The senator highlighted the shift in the demographic of those involved in these operations. POGOs, which thrived during the Rodrigo Duterte administration, were primarily owned and managed by Chinese nationals. However, the recent exodus of these Chinese operators has paved the way for Filipinos to step into the roles they once filled.

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In the case of 3D Analyzer, Gatchalian noted that approximately one-third of its nearly 300 employees were Filipinos. This statistic is particularly concerning, as it suggests that locals are not only becoming employees in these ventures but are actively participating in the scamming operations themselves.

The senator pointed out that former POGO workers have capitalized on their proficiency in English, a skill they often possess in greater abundance than their previous Chinese employers. “Since they were better in using the English language than their Chinese bosses, the Filipino POGO operators were also better in looking for potential victims,” he explained. This linguistic advantage has allowed these local operators to broaden their reach and target a wider audience for their scams.

Gatchalian further noted that the financial returns from these smaller POGO-like operations tend to be higher. This is primarily because they operate with lower overhead costs, lacking the significant investments that characterized the larger POGO operations. “From what I heard, the profits from the operations of these smaller POGOs were even bigger because they practically don’t have huge investments,” he stated.

The structure of these new scamming groups often includes a designated Filipino leader or organizer who recruits individuals to join their schemes. Gatchalian mentioned that these leaders typically gather teams of 20 to 40 people to carry out various fraudulent activities.

“We’re already looking into this and when the time comes, we will invite these leaders [to the Senate hearing],” he added, indicating that the Senate is preparing to address this rising issue.