Philippines Cracks Down on POGOs and Rising Crypto Scams

Crypto Scams and POGOs Pose New Threats to Philippines Security

The Philippine government‘s crackdown on offshore gaming operations (POGOs), whThe Philippines’ crackdown on offshore gaming operations (Pogos) has raised concerns that the industrys forced shift underground could lead to more sophisticated, harder-to-detect criminal activities. Experts warn this could pave the way for major crypto scams, human trafficking, and even espionage, with local officials allegedly involved in profiting from illicit operations.

During a Senate hearing on Tuesday, opposition Senator Risa Hontiveros shed light on the growing concerns, stating that Pogos—once catering largely to Chinese clientele—may not only be linked to scams but could also be used to spread disinformation. “It seems that gambling, scams, and trafficking are not the only goals of these compounds, but spreading fake news too,” Hontiveros said, as she led an investigation into illegal Pogo operations.

Pogos have long been associated with money laundering, human trafficking, and criminal activities. Hontiveros has linked the industry's rapid expansion to exploitation, including the rise of crypto scams. She revealed findings of raids that uncovered a combination of illegal gambling, fake news operations, and money laundering within Pogo compounds.

In July, President Ferdinand Marcos Jr. announced a ban on all Pogos, including licensed ones, instructing them to cease operations by the end of the year. However, experts fear that the crypto scam industry might thrive as Pogos go underground, utilizing the countrys weak regulatory systems to continue illegal activities.

Alvin Camba, a critical materials specialist, stated, “The Philippine governments ability to regulate the informal economy is quite limited. Pogos will likely relocate to special economic zones or other areas with weak national oversight, continuing their operations.”

Underground Operations Fueling Crime

Several observers, including Camba, argue that the ban could lead to more underground operations where criminal groups thrive. Camba speculated that if scamming people through crypto or gambling becomes less profitable, these criminal networks could turn to disinformation as a new source of revenue. These disinformation campaigns could be linked to larger espionage operations.

Hontiveros pointed to China's involvement in espionage and propaganda activities in the Philippines through the Pogo industry, revealing how individuals like She Zhijiang, a detained tycoon in Bangkok, might be part of Chinese intelligence efforts.

Experts agree that if the Philippine government fails to tackle these underground operations effectively, the country could face a sharp rise in cybercrimes and crypto-related frauds, further destabilizing the regions security.

Why Cryptocurrency Is a Gateway to Scams in the Philippines

The Philippines has seen a surge in crypto-related scams, which could intensify due to the underground operations of Pogos. Cryptocurrency provides an ideal platform for scams due to its anonymity and lack of stringent regulations, making it easy for fraudsters to exploit unsuspecting victims. The ban on Pogos might push many of these scam operations to the crypto market, where local authorities struggle to enforce laws, putting the Philippine population at greater risk of falling victim to these scams.