Philippine local authorities shut down BPO over alleged scams
CEBU, PHILIPPINES — Lapu-Lapu City authorities have ordered the closure of a business process outsourcing (BPO) company accused of operating without necessary permits and engaging in online scams.
Fraudulent activities targeting aspiring authors
The BPO firm, located in Barangays Poblacion and Pusok, allegedly posed as independent literary agents to scam authors and aspiring writers.
Mayor Junard Chan announced the closure on September 27, 2024, after receiving complaints from three employees about the company’s fraudulent practices.
The firm reportedly enticed authors to pay for book packaging and preparation services with promises of publishing submissions. Once payments were made, communication was abruptly cut off, leaving authors without support and out of pocket.
Criminal Investigation and Detection Group (CIDG) Lapu-Lapu Chief Richard John Macachor stated, “The City received complaints that they were running a publishing scam, where once the victims invested, the company would cut off all communication.”
Permit violations lead to immediate shutdown
Investigations revealed that the BPO had not renewed its business permit for 2024. This violation prompted city authorities to issue a cease and desist order on September 26, swiftly closing the firm’s operations. The city’s task force against illegal business operations was activated to address the issue.
Mayor Chan emphasized the importance of the operation to prevent further scams against unsuspecting writers. “We referred the case to the police for further investigation,” he said.
By the following day, both offices in Poblacion and Pusok were shut down.
Ongoing investigation and potential legal actions
The Lapu-Lapu City Police Office is investigating how long the BPO operated without permits and assessing the number of victims affected by the scam.
Macachor noted that while the operation halted the company’s activities temporarily, sustained action requires criminal charges to be filed. “It was a successful operation in terms of stopping the firm temporarily and preempting further fraudulent activities,” he said.
The firm reportedly began operations in November 2023 in Barangay Babag before relocating to Poblacion and Pusok without renewing permits or securing necessary clearances. The city task force found that between 40 and 60 local employees worked at the firm’s offices.
Macachor clarified that this scam did not involve offshore gaming or foreign nationals but was focused solely on defrauding authors.
