Written by Sofia Regina Yasay/THE RED CHRONICLES
Layout by Lynden Alyanna Valenzuela/THE RED CHRONICLES
Receiving random text messages, emails, or even message requests on different platforms from strangers with contents that make it seem like they were sent to the wrong person is actually a form of scam. Scams have been a long-time fraudulent scheme that people are forewarned about. As we continue to modernize, the same progress applies to methods of scams people create. One of these is the pig butchering scam, also referred to as Sha Zhu Pan (杀猪盘) in Chinese, which involves deceiving victims through fake online investment platforms combined with romantic manipulation.
The term “pig butchering” refers to the act of fattening a pig before slaughter. In the context of scams, it refers to scammers who “fatten up” their victims with conversation and compliments before defrauding them. It’s a mixture of both investment and romance scam.
These scams start with cold messages on social media or dating apps, often with a simple greeting. If the victim responds, the scammer creates a fake persona and builds a trusting relationship. Once trust is established, the scammer proposes a seemingly lucrative, low-risk investment in cryptocurrency. Initially, the victim can withdraw small amounts of money, which reinforces the scammer’s credibility. However, after significant investments, the scammer shuts down the fake platform and disappears with the victim’s money, leaving them deceived and financially devastated. Thus, the victim, metaphorically “fattened up” with trust and attention, is ultimately “slaughtered” when the scammer takes everything they can.
Upon further checking, there was a recent news article about hundreds of people being rescued from a scam center in the Philippines that made them pose as lovers online. The scam center is specifically located in Bamban, Tarlac, which as of writing has been a controversial subject due to its mayor, Alice Guo, being the subject of a Senate probe on account of her alleged ties to criminal activities and association with Philippine Offshore Gaming Operators (POGOs).
Reports have surfaced linking POGOs to a range of criminal activities, including money laundering, prostitution, and most alarmingly, human trafficking. It has also been reported that many POGOs are fronts for various scams, including love and cryptocurrency scams. Interviews with rescued victims confirmed their involvement in these fraudulent activities.
The connection between POGOs and pig butchering scams is more than coincidental. Both rely on exploiting legal and regulatory loopholes, as well as leveraging the desperation of vulnerable populations. Human traffickers, often operating under the guise of employment agencies, lure individuals into POGO-related jobs with promises of high wages. Once ensnared, these individuals may find themselves coerced into participating in scams or other illegal activities, effectively becoming modern-day slaves.
On both ends of this pig-butchering scam, there are two victims: first, the person who was led to believe that they found a job opportunity only for it to be a form of human trafficking that forces them to commit illegal activities such as fraud, and the other victim is the person on the other end of such fraud who was led to believe that they formed an intimate connection with someone and gradually being milked dry of their money.
The Philippines, being a hotspot for these fraudulent and illegal activities, should reinforce the need to have stronger oversight of POGOs, specifically more stringent licensing processes, regular audits, and severe penalties for operators involved in illegal activities. Additionally, there must be a concerted effort to dismantle human trafficking networks, starting with stricter controls on recruitment agencies and better protection for workers.
Due to the proliferation of criminal activities linked to the industry, a bill seeking to outlaw the operations of POGOs in the country has been filed. In filing Senate Bill No. 2689, Senator Sherwin Gatchalian cited several incidents of human trafficking and online scams related to POGO that have come to the Senate’s attention. In addition to this, ACT Teachers party-list Rep. France Castro led the filing of House Bill (HB) No. 10525 or the proposed Anti-Pogo Act of 2024, which is in response to the alleged proliferation of illegal activities connected to POGOs.
Whether or not these bills are approved, implementing comprehensive cybersecurity measures is equally important in combating pig butchering scams and other scams that people can fall prey to. The government should collaborate with financial institutions and tech companies to improve detection and prevention systems. Public awareness campaigns can also play a vital role in educating citizens about the dangers of these scams and how to recognize them.