DICT investigates crypto fraud scheme after hacker’s video reveals inner workings of alleged scam syndicate
The Department of Information and Communications Technology (DICT) has launched a formal investigation into a suspected cyber scam ring operating from Cebu IT Park, following revelations from a viral exposé by a self-identified ethical hacker who infiltrated the syndicate’s operations.
The hacker, known online as “mrwn,” released a YouTube video exposing the alleged scam ring, which he claims operated under several aliases—including Virtual Wealth Exchange, BTC Boutique, and Solis Market. These platforms, presented as cryptocurrency trading services, reportedly defrauded hundreds of victims in Europe, North America, and Africa through sophisticated investment scams.
“We have to investigate further. But the investigation of ‘mrwn’ has provided good leads and we have several persons of interest already to pursue investigation and attribute certain crimes with them,” said Renato A. Paraiso, DICT Assistant Secretary and Cybercrime Investigation and Coordinating Center (CICC) Custodian.
Part of the probe, according to Paraiso, will focus on how the alleged scam outfit was able to obtain local permits to operate within Cebu, raising questions about regulatory oversight at the local government level.
The fraudulent operation allegedly used a two-step tactic to deceive victims. “Openers” would lure unsuspecting investors to deposit small sums into fake trading platforms showing manipulated returns. Once trust was built, “retention agents” or “closers” would step in, fabricating huge profits to pressure victims into investing larger amounts.
Internal documents accessed by mrwn reportedly show the group made over $68,000 in February, with projected annual earnings surpassing $365,000.
The DICT is working closely with law enforcement agencies to verify evidence tied to BMJ Data Processing Services, the company listed in leasing records. The group initially rented space through Bposeats before relocating to another site within Cebu IT Park.
Jack Madrid, president of the IT & Business Process Association of the Philippines (IBPAP), responded to the exposé by distancing the organization from the accused. “I have seen it. We are unsure as to the source of the video but clearly this is not the activity of an IBPAP or CIB.O [Cebu IT-BPM Organization] member,” he said.
Madrid added, “We do not know who this company is, if they are a registered enterprise or not. So it is difficult to take an action, especially if the unknown entity is not an accredited member.”
Scam Watch Pilipinas, a national anti-fraud advocacy group, weighed in on the wider implications. “The recently released video provides a rare and unfiltered look into the daily activities of individuals engaged in fraudulent schemes, highlighting the normalization of such illicit activities within certain sectors,” the group said.
Contrary to common assumptions that employees in scam hubs are coerced, the footage appeared to show voluntary participation. Workers were seen laughing after duping a victim and allegedly competing for “Scammer of the Month,” reportedly awarded by a floor manager named Antonio.
Scam Watch Pilipinas called on the Philippine National Police Anti-Cybercrime Group (PNP-ACG) and the CICC to act swiftly, warning that the Philippines’ reputation as a global cyber fraud hotspot continues to worsen.
“It is disheartening that the video has revealed the Philippines’ growing global notoriety in cyber fraud,” the group said.
The alleged mastermind of the scam ring has been identified only as “Adam,” who reportedly uses an Israeli phone number. As international scrutiny increases, the group is said to be shifting operations from Canada and the UK to Nigeria, South Africa, and the Gulf region.
Paraiso confirmed that a joint memorandum circular is being prepared to form a dedicated task force targeting online scams, troll farms, and misinformation networks. He also signaled openness to collaborating with ethical hackers like mrwn in tracking cybercriminals.
“We can only put a stop to these scam hubs if we put people behind bars,” Paraiso said.
