PHILIPPINE National Police Officer-in-Charge (PNP-OIC), Lieutenant General Vicente D. Danao Jr. on Wednesday called on the public anew to beware of the so-called ‘cryptocurrency’ schemes’ which could rob innocent people of the savings they made in the past15-20 years in just a matter of days or weeks.

He said the people should be wary of investing their hard-earned money on dubious income-generating schemes in the wake of the arrest last June 11 of 19 individuals accused of enticing their targets to invest in an unregistered company dealing with cryptocurrency.

Members of the Quezon City District Anti-Cybercrime Team, joined by representatives from the Securities and Exchange Commission arrested the 11 during an entrapment operation inside a hotel in Cubao, Q.C. The sting was conducted following complaints from several persons victimized by the group.

The suspects were charged with violation of the Securities Regulation Code in relation to Republic Act 10175 or the Anti-Cybercrime Prevention Act of 2012.

“We would like to remind the public not to fall prey to this too good to be true business, promising a huge amount of return within a span of time. If you encounter anything like this, don’t hesitate to report to authorities,” Lt. Gen. Danao said.

The top cop also told the public that if they start entertaining doubts on the legitimacy of an investment company once it tries to collect cash from them, they can always check with the SEC.

Cryptocurrencies are also being used in online drug trafficking, the Philippine Drug Enforcement Agency said.

The PNP and the PDEA headed by Director General Wilkins M. Villanueva have been alarmed by the growing cases of online drug trafficking in the country amid the pandemic brought about by the COVID-19 virus and are doing everything they can to arrest the problem with the help of their foreign counterparts and E-commerce companies and other delivery firms, the Journal Group was told.

Villanueva said they have observed a rise in the incidence of illegal drug trafficking activities using Information and Communications Technologies (ICTs).

With the technological boom encouraged by the global pandemic and a global demand for fast, virtual transactions, drug traffickers have turned to internet-based fund transfer services, online-booked courier services, and internet messaging applications to communicate with their cohorts and buyers.

Equally alarming to PDEA, he said is the persistence of illicit market sites in the Darknet: online stores in that overlay network within the Internet that can only be accessed with anonymity proxy networks.

A cursory sweep of darknet sites offering illegal substances and services revealed brisk business in illegal drugs such as Kush and Crystal methamphetamine/ methamphetamine hydrochloride, among others.

Villanueva said that cryptocurrencies – anonymous digital money based on blockchain technology, also continue to fuel licit and illicit online markets.

According to the official, Pioneer cryptocurrency Bitcoin continues to be popular even with the advent of altcoins like Ethereum. As of November 2020, the Philippines plays host to at least 17 registered ventures that provide virtual currency exchange services.

Recognizing that the endpoint of all illegal drug transactions, whether in-person or online, is the delivery of the contraband, the PDEA has sought the cooperation of E-commerce companies and courier services.

Last November, the Agency signed a Memorandum of Agreement with signed with courier service Lalamove Philippines Inc. and Lala App Philippines Inc. It also inked an agreement with courier service J&T Express in December 2020; and with Wallstreet Courier Services Incorporated-popularly known as Ninja Van in June 2020.

Villanueva said they are looking at previous law enforcement models to aid strategy formulation against Darknet markets, such as Operation DisrupTor, which was run by the European police agency Europol and the US Department of Justice in 2020.

On that year, Europol and U.S. agents served 179 search leading to the arrest of more than 170 vendors and buyers of illicit goods on the dark web.

PDEA officers had successfully intercepted 3,034 Tablets of 3,4-Methylenedioxymethamphetamine (MDMA), or Ecstasy, shipped from the Netherlands in January 2022, and 387.5 grams of shabu shipped from Cape Town, South Africa in 2021.

“Technology is both a boon and a bane,” said Villanueva.

“We benefit a lot from the cost savings, convenience and safety afforded by technologies such as online banking and voice calls via VoIP; but we must remember that criminals will take advantage of these technologies as well. It is not enough to keep pace with these drug trafficking groups; rather, we must be one or two steps ahead,” the PDEA chief added.