A raid conducted on August 1 at SA Rivendell Global Gaming, an offshore gaming firm in the Philippines, uncovered more than 28,000 SIM cards used for cyberscams. The investigation also revealed that the firm registered unopened SIM cards on social media messaging apps and platforms to lure victims. On August 7, the Department of Justice (DOJ) held a coordination meeting with law enforcement agencies and telecommunication network giants Smart and Globe to build a case against the scammers. This marked the first time that telcos were involved in a case build-up with the DOJ. The DOJ believes that the telcos can assist law enforcers in identifying the mechanisms used by scammers and closing security loopholes.
SA Rivendell Global Gaming, a Chinese-run offshore gambling firm, was targeted because of reports of victims falling prey to fraudulent cryptocurrency schemes from Europe, Australia, and Hong Kong. The investigations revealed that the firm was engaged in various scams, including love scams, online betting, and cryptocurrency scams. The scammers managed to register unopened SIM cards on popular social media platforms like WhatsApp, Viber, Instagram, Google, and YouTube, raising concerns about how they were able to accomplish this.
President Ferdinand Marcos Jr. signed the SIM Card Registration Act on October 10, requiring Filipinos to register their SIM cards along with a government-issued identification document to combat fraud. Failure to register would result in deactivation and restricted access to e-commerce platforms and social media accounts. However, critics of the law argue that it poses risks to legitimate users’ personal information without effectively stopping scammers.
During the raid, authorities found various scam tools, including unused SIM cards from UK telecommunications companies. A total of 644 workers of different nationalities, including Filipinos, were involved in the firm’s operations. Dozens of workers faced inquest for violations of securities regulations and cybercrime prevention laws. The Philippines Amusement and Gaming Corporation issued a suspension order to SA Rivendell due to evidence of its involvement in scam operations and irregularities in its operations.
Furthermore, the investigation revealed that SA Rivendell facilitated monetary transactions for online gaming through company-owned mobile phones, specifically using the local payment platform GCash. The firm also utilized a US-based company to process payments from debit and credit cards. The payments were verified through the local OTP system for security purposes.
The raid has shed light on the sophisticated operations of offshore gaming firms and the need for collaboration between law enforcement agencies and telcos to combat scams and protect victims.
