The President's Anti-Organized Crime Commission of the Philippines (PAOCC) and the National Police (PNP) recently conducted a joint operation in Parañaque City, arresting two illegal SIM card traffickers and seizing 240 "stealth SIM cards" registered under false identities. These SIM cards were illegally sold at a price of 1,500 pesos each, primarily used to support communication needs for transnational criminal activities such as POGO telecom fraud and online loan extortion. The police stated that these illegal SIM cards are key tools for fraud groups, used for identity disguise, fund collection, and money laundering through cryptocurrencies. This operation marks a shift in Philippine law enforcement strategy from direct arrests of fraudsters to cutting off the criminal supply chain, with related cases decreasing by 28% in the first half of 2025.
Law Enforcement Actions and Arrests
The President's Anti-Organized Crime Commission (PAOCC) and the National Police (PNP) launched a joint law enforcement operation on October 9 at a gas station in the Sucat area of Parañaque City. The operation employed a trapping strategy, successfully arresting two illegal SIM card traffickers.
The arrested suspects were identified as brothers Carlo Diaz and John Abraham Diaz, who were allegedly involved in long-term illegal SIM card sales activities, providing communication support for criminal organizations.
Seized Items and Evidence
The operation seized 240 SIM cards registered with false identity information, labeled as "stealth cards" due to their untraceability to actual users. The police also found 12 mobile devices used for testing the SIM cards and a ledger detailing transaction activities.
The ledger showed that these brothers had financial transactions with multiple "clients" in Manila, Cebu, and other locations over the past six months, providing valuable clues for investigating criminal networks.
Illegal Operations and Sales Patterns
The suspects openly sold "pre-registered SIM cards" on social media platforms like Facebook Marketplace, claiming that these cards could be used anonymously and were untraceable. Each card was sold for up to 1,500 pesos, ten times the price of a regular SIM card.
Through these illegal transactions, the two suspects profited over 300,000 pesos (about $5,400) per month, highlighting the lucrative nature of the illegal SIM card market.
Criminal Uses and Risks
These illegal SIM cards were primarily used to support transnational criminal activities such as POGO telecom fraud and online loan extortion. Fraud groups used these cards to disguise identities, communicate with victims, collect illegal funds, and then launder money through cryptocurrency or gold transactions.
PAOCC Deputy Secretary General Gilberto Cruz pointed out: "Almost every scam text message and every extortion call is backed by an illegal SIM card."
Technical Means and Equipment Cooperation
Illegal SIM cards are often used in conjunction with professional devices such as "SIM banks" and "GOIP," which can send scam text messages and make virtual calls in bulk. These technologies allow overseas scam numbers to appear as local calls, significantly increasing the success rate of scams.
This technical cooperation enables criminal gangs to operate efficiently while increasing the difficulty for law enforcement to track them.
Legal Background and Regulatory Loopholes
The Philippine "SIM Card Registration Act" was originally intended to eliminate fraud through real-name registration, but the illegal market found ways to circumvent regulation. Fake cards are mainly obtained through three channels: mass registration using forged IDs, deceiving the elderly or impoverished into "proxy registration," and telecom insiders providing "backdoor" access.
Deputy Secretary General Cruz admitted: "The real-name system is strict on paper, but the black market always finds loopholes."
Shift in Law Enforcement Strategy and Effectiveness
This operation represents an important shift in Philippine law enforcement strategy—from directly "arresting fraudsters" to "cutting off the criminal supply chain." The police believe that targeting communication tools and other criminal infrastructure can more effectively curb criminal activities.
Data from the first half of 2025 shows a 28% decrease in crime cases derived from POGO, with over 40% of the reduction attributed to strikes against the "black card" and "SIM bank" supply chain.
International Contacts and Subsequent Investigations
The arrested suspects confessed that they were just "mid-level agents," with upstream suppliers from countries like Vietnam and Cambodia. This indicates that the illegal SIM card trade is part of a transnational criminal network.
The Philippine police have initiated cross-border intelligence cooperation with international law enforcement agencies to track down larger criminal networks behind the scenes, with further law enforcement actions expected.
Market Impact and Consumer Warnings
The existence of the illegal SIM card market poses serious risks to ordinary consumers. These cards are not only used for criminal activities but can also be used for identity theft, financial fraud, and other illegal acts.
The police remind the public to only purchase and use SIM cards through official channels to avoid inadvertently getting involved in criminal activities or becoming victims.
Industry Cooperation and Preventive Measures
Philippine telecom operators are strengthening cooperation with law enforcement agencies to identify and block abnormal registration activities. Industry organizations call for enhanced internal regulation to prevent employees from participating in illegal SIM card registration and sales activities.
Experts recommend adopting more advanced identity verification technologies and real-time monitoring systems to better enforce the provisions of the "SIM Card Registration Act" and plug regulatory loopholes.
