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Sunday, July 6, 2025
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Rising online scams erode digital economy, consumer group warns

A consumer rights advocate has raised concerns over the growing threat posed by high-tech online scams that exploit gaps in digital security, warning that trust in internet services is eroding at a time when the country’s digital economy is rapidly expanding.

Tim Abejo, co-convenor of CitizenWatch Philippines, called on government authorities to crack down on the malicious use of International Mobile Subscriber Identity (IMSI) catchers, also known as “cell site simulators” or “fake base stations.”

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These devices mimic legitimate cell towers to intercept mobile communications and are used by scammers to impersonate legitimate telecom signals to lure unsuspecting users into revealing sensitive personal and financial data,

“These IMSI catchers act like telco cell sites,” Abejo explained. “They trick your phone into thinking it’s connected to a real telecom network, then send you messages that look like they’re from your bank or mobile service provider. One click on a malicious link, and you’re either handing over your private info or unknowingly downloading malware that gives hackers full access to your device.”

He said these devices that were once bulky are now small enough to fit in a backpack and mobile enough to be transported in vehicles to infiltrate residential and commercial areas undetected.

“That’s what makes them dangerous. They’re stealthy, mobile, and outside the control of our telcos’ because they don’t need to access the legitimate mobile networks,” Abejo said.

“There’s no true digital inclusion if people are afraid to pay bills, make transactions, or even message their bank online because scams are so widespread,” he added.

While the government has reportedly intercepted some IMSI catchers, the masterminds behind these operations remain at large.

“Our digital economy was worth $35.4 billion in 2023—about 8.4% of GDP. But that growth is at risk,” he said.

“People won’t use online banking, e-wallets, or e-commerce if they don’t feel safe. And if they lose trust in digital transactions, it could also undermine the eGovernment initiative and other digital efforts meant to boost the economy. If trust keeps falling, digital adoption will stall.”

“Digital inclusion can’t just be about access — it has to be about safe access,” Abejo added.

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