Hundreds of hackers linked to telco fraud

Smart cites ‘substantial’ loss after arrest of 3 Taiwanese in Makati


MANILA, Philippines—Local telecom firms lose millions of pesos in revenues annually to hundreds of illegal operators that bypass global payment systems to convert long-distance calls to domestic.

A leading telecom executive on Tuesday described the magnitude of the problem following the arrest on Friday of three Taiwanese nationals and their Filipino cohort for allegedly running a call bypass fraud syndicate from their condo units in Makati City.

The arrests were made by the National Bureau of Immigration on a complaint from Smart Communications Inc.

“It is definitely a substantial amount,” said Smart spokesperson Ramon Isberto, who declined to give figures when asked how much his company has been losing to such syndicates.

Isberto said Smart is monitoring “several hundreds” of possible international call bypass operations mostly based in Metro Manila. The company can look into these activities by checking for unusually heavy usage patterns by individual SIM (subscriber identity module) cards on its network, he said.

Using advanced computer technology, he said, syndicates may be able to bypass the normal payment systems for international calls. As a result, long distance calls are only charged as domestic calls.

Isberto said the criminals tap this technology by selling long-distance call cards overseas. “These cards usually tell users to call a certain number. Then the operators here are able to switch the call to make it seem like a domestic call,” he added.

NBI agents on Friday arrested Taiwanese nationals Wen Shang Yang, Huang Jian Wei and Jang Yuan-JR, as well as Filipino citizen Ruben Vallespin, inside their respective units at Makati Cinema Square Tower on Chino Roces Avenue and at Palm Towers in Barangay San Antonio also in Makati.

Rolando Paruli Jr. of the NBI’s Computer Crimes Unit (CCU) said the raiding teams also seized GSM (global system for mobile) gateway devices, routers, cables and “thousands of assorted SIM cards.”

The suspects were detained at the NBI headquarters in Manila and charged with theft and violation of the Access Devices Act and E-Commerce Act before Makati City prosecutor Analie Brual.

A complaint filed by Smart at NBI-CCU noted the extraordinarily big volume of international calls monitored from the condominium units.

The NBI secured search warrants from Manila Regional Trial Court Executive Judge Marino dela Cruz.

According to Paruli, call bypass syndicates usually contact international gateway operators and offer cheaper termination fees, enabling them to corner deals while using legitimate gateway facility operators like Smart.

While call bypass operations are legal overseas, only a few companies are licensed to operate in the Philippines, the NBI official said.

Both Isberto and Paruli said the government also loses heavily in terms of unpaid taxes due to these illegal operations.

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Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • goldilock

    Use skype

  • pening_garcia


  • ryan andres

    The fact that most, if not all comments below are airing the same sentiment should be enough evidence for these greedy b@stards to change their ways.

    Sige na Smart at Globe, mahal na araw naman eh… umayos na kayo please.


    To the Greedy Telcos : Better not exercise trickery upon your fellowmen for selfish GAIN, for you will also be outwitted and experience an unpleasant PAIN. ………………. Atin ngang iwasang mandaya ng KAPWA para lang sa pansariling GINHAWA, pagka’t matalino man ang MATSING ay napaglalalangan DIN. —————> It looks like SMART got OUTSMARTED …………. Hahaha !!! ((^_^)) ☻☺☻☺☻


    To the Greedy Telcos : Ang MASAMA ay di dapat GINAGAWA sa ating mga KAPWA, pagka’t anumang bagay na sa kapwa’y GAWIN ay mangyayari din SA ATIN, kaya nga’t gawin sa iba ang gusto mong gawin nila sa iyo, at huwag gawin sa iba ang ayaw mong gawin nila sa iyo (ref: Mateo 7:12). ((^_^)) ☻☺☻☺☻


    To the Greedy Telcos : It is but proper not to do anything MEAN to our fellow HUMAN BEING, because whatever evil we do to a FELLOW HUMAN will undoubtedly BOOMERANG, that is why we should do to others what we like them to do to us, and we should not do to others what we don’t like them to do to us (ref: Matthew 7:12). ((^_^)) ☻☺☻☺☻

  • D L

    Smart and Globe are the dаmn robbers, the slowest internet in asia.

  • TrentonWoods

    Actually this telco are the one who steal from the people through vanishing load. 

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