The Philippine government recently disclosed that a group of criminals, formerly active in the POGO scam parks, are transitioning to operating illegal online lending (OLA) businesses, with at least 55 illegal loan applications linked to them. As the government intensifies its crackdown on the gambling and telecom fraud industries, these gangs have quietly switched lines, reaping the public through online lending.
Law enforcement investigations have found that these illegal online lending platforms harass borrowers through AI-generated photos, SMS bombardments, and fake base station interceptions (MC catcher), implementing phone threats and social media harassment as high-pressure collection tactics, even leading to some victims committing suicide due to the severe circumstances.
These gangs operate in a highly systematic manner, with companies specifically providing "keyboard hitman" services, i.e., phone intimidation and SMS pressure personnel. Their organizational structure is identical to the former POGO scam parks, relying on SMS bombers and signal tracking devices to lock onto targets and exert psychological debt pressure.
Moreover, criminals also place ads on platforms like Google Play, Facebook, and TikTok, promoting "low threshold, quick loans" to lure low and middle-income groups to download their applications. They implement a performance-based commission system internally, taking a cut from the debt collection amount, with superiors providing detailed "target lists," forming a complete black industry chain.
Currently, Philippine law enforcement has arrested 172 individuals involved, with charges including violations of the Data Privacy Act and the Cybercrime Law. Officials have vowed to continue digging into the masterminds behind the scenes, determined to eradicate this new type of scam industry chain and prevent the "old scam gangs" from making a comeback.
