SENATE deputy minority leader Risa Hontiveros yesterday said a crypto scam hub operating in the country has been using a licensed Philippine Offshore Gaming Operator (POGO) as legal cover for its illegal operations.
Hontiveros made the disclosure during the hearing of the Senate Committee on Women, which she chairs, into the spreading operation of cryptocurrency scam and human trafficking syndicates in the local setting.
She said the scam center is operated by a company called Colorful and Leap Group, which is a sublessee of CGC Technologies Inc., a POGO company licensed by the Philippine Amusement and Gaming Corporation (Pagcor).
A representative from the Inter-Agency Council Against Trafficking (IACAT) confirmed Hontiveros’ revelation that scam centers use legal covers to operate.
Hontiveros scored the Pagcor for not monitoring the activities of legitimate POGO operators.
“Ano ginagawa ng PAGCOR? Hindi naman puwede na kapag nag-apruba sila, hindi na nila babantayan. (What if the PAGCOR doing? It should not be that after approving their operations, it will no longer monitor their activities). PAGCOR, as the regulator of POGOs, should be actively looking into the companies that they allow to operate in the country.
Otherwise, it is, in effect, exacerbating this growing and disturbing humanitarian crisis in our region,” she said.
Hontiveros said she learned of the illegal activities of the Colorful and Leap Group when she visited Sun Valley Hub Corporation in Clark, Pampanga which was raided by the police last May 4.
An estimated 1,000 trafficked persons from Indonesia, Vietnam, China, Myanmar, Thailand, and Bhutan were rescued during the raid, while 12 persons working as operation supervisors were arrested.
The senator said she found out from the rescued workers that the scam center was run by “Chinese bosses” and operated like a call center with rows of computer tables.
She said the setup was similar to the scam hubs operating in Myanmar and Cambodia where several Filipinos who applied for decent jobs were forced to work as scammers.
“This was where the victim-survivors would set up their fake accounts using different female models also hired by the company. They would then find scam victims usually from the US, through dating apps like Tinder, Facebook Dating, Bumble, and Hinge,” Hontiveros said.
“The offices even have video conference rooms that are set up to look like a bedroom, a living room, a gym, or an office, so the hired model can pretend to be there should the American victim ask for photos or videos to confirm her veracity. Kapag sa tingin nila na-iinlove na ang Amerikano, doon na magsisimulang kumbinsihin niyang mag-invest sa pekeng cryptocurrency platform. Hanep sa panggagantso,” (If they feel that the American [victim] is already falling in love, that will be the time that they will convince him to invest in fake cryptocurrency platforms. What a scam!),” she added.
She said the scheme is identical to the operation of scam hub at the Bayport NAIA Residences in Pasay City, which she flagged during the previous hearing using the statements of an Indonesian witness who was trafficked into the country to work as a scammer.
Hontiveros said the company in Bayport has not ceased operations.
“Laganap pa rin sa social media, lalo na sa Facebook, ang mga job ads na papuntang Bayport Residences. Napatotohanan na ng ating dating Indonesian witness na si Ridwan na scam ang kalakaran sa loob niyan. I hope our law enforcers conduct a raid and rescue in that area as soon as possible
(Advertisements on social media, especially on Facebook, on jobs in Bayport Residence are still rampant. Alias Ridwan, a witness during our past committee hearing, has attested that it is a scam. I hope our law enforcers conduct a raid and rescue in that area as soon as possible),” she said.
The senator said that the first concrete step to take is to ban POGOs as they provide a “legal cover” for these hubs and their operations remain beyond regulatory scrutiny.
“If POGOs are allowed to continue business as usual, the crypto scam and human trafficking operations will also grow at a frightening rate, our government will never be able to overtake. Walang ni isang magandang bagay ang naibigay ang POGO sa bansa. Krimen lang ang dala. Paulit-ulit na natin itong sinasabi, at sana naman sa bagong impormasyong ito, matauhan na ang ating gubyerno. Kick POGOs out of the country now (POGOs have done nothing good to the country. Instead, they have brought in crimes. We have been saying this over and over that the government should see the real picture in allowing POGO operations. Kick POGOs out of the country now),” she said.
