You Might Get Scammed in the Philippines?
Boy oh boy I bet you’ve heard that one before, eh? Of course you might get scammed in Kansas City or Colorado Springs just as easily, but a huge fear of most foreigners, especially Americans, coming to the Philippines, is that some “fast-taking”, “fast buck” charlatan is going to take advantage of their foreigner status and relieve them of their funds.
After nearly 8 years of living here as an American retiree and Internet entrepreneur, I am am not going to tell you that it can’t happen.
But I am going to tell you that it is far, far less likely to happen if you follow some very simple rules, and also.not everyone is your friend … no matter how personable they are.
Simple Anti-Scam Rule One:
You can’t cheat an honest man! Ever heard that before? Personally I feel it is pretty much true 99.999% of the time. Your opinion may differ of course, but I can see this happen so often in real life that you will not sway my opinion an iota.
If you study up on well known US ‘scam artists” you’ll find that one of the prime ingredients in setting up their scams is they need to find potential “marks” who will demonstrate that the “mark” has some larceny in his/her heart. Sometimes they will even go to the lengths of having a second, smaller scam in place that they “run” with the “mark” actually “winning”. Gives the intended victim the correct mindset for jumping in on the bigger “real” scam.
If you truly want to avoid being taken just arm yourself with this thought. If it is not yours, you are not, as an honest person, entitled to it. Simple as that. But of so very hard for many to comprehend.
I don’t want this article to run on forever, so I am going to close the discussion on this particular rule up here, with a very simple “honesty” test you can all perform.
Would You Want One of Your Children to Do This Deal?
Or would you be comfortable writing up the terms of the deal you are thinking of and taking the idea to you mom? Or your Sunday school teacher, other clergyman or some other leader whom you respect? (If you are a Christian, would it pass the WWJD (what would Jesus do) test. If so, great. It’s probably not a scam. But if it smells like something for nothing, remember this. TINSTAAFL. (If you aren’t familiar with the acronym, type it into Google .. you just might learn something)
Simple Anti-Scam Rule Two:
Base your decision on the facts of the deal, not upon the color of the person’s skin. I am never shocked and disappointed by the number of people who write me about moving to the Philippines, living in the Philippines and such, but use phrases like “Of course I know that the Filipinos are all out to cheat me.” Or, “I only want to live and make friends with other foreigners, because the Filipinos will all see me as a walking ATM”, or a continual stream of distasteful, racially biased statements like “I refuse to pay the long nose tax”, “I know I must be prepared to defend myself against the “puti” (white) cheating prices”, on and on until it makes me sick at times.
If you feel that way about living in the Philippines, then why the Hell even come?
In my 8 years of experience here the “long nose tax” mainly just does not exist. You may choose not to believe me, again, your privilege, but my wallet and bank account say differently.
Every Foreigner is NOT Your Friend
I learned a lot about this truism just after I came to live in the Philippines in 2006. A foreigner online friend wanted to buy a small motorcycle for zipping around his home town here on Luzon. Now “buzzy” little motorcycles, especially 100 or 125 cc. two-stoke motorcycles are literally a dime a dozen. They are all over the place. And it’s rare to find a village small enough and remote enough _not_ to have a motorcycle dealer. The major brands like Kawasaki, Yamaha, Honda and such are all represented.
But my American friend was “too smart by half” to get himself “fleeced” by the “puti” tax. Oh no, not him, he was not going to fall into the trap of letting “those” Filipinos pick his pocket. Nope. He knew the score.
So my local friend posted all over a bunch of Philippines discussion groups until he found a fellow American … (in Cebu, about 500 miles away) who was selling a “Good, used 125cc. Kawasaki”. The asking price was $1200 USD and the seller was willing to share half the cost involved in getting the machine crated up and shipped “inter-island”. What a deal these guys had made. Almost made in heaven to hear them chitter-chatter back and forth online.
Well after about a month the fabulous “good used” motorcycle arrived here at my friend’s on Luzon.
Eagerly he ripped open the crate, jumped right on the kick starter to fire up his new prize, and promptly feel off on his ass, because the kick starter. Rather than spinning the engine over, was frozen solid as a rock. Hmm
Yep, those of you who know little two-stroke engines probably have already guessed. The kick starter (and the engine itself) were frozen up as if welded that way. Sticking out the side of a jagged hole in the engine’s lower crankcase was the end of the engine’s connecting rod … frozen in place so hard that a sledge hammer wouldn’t move it. Bummer.
Immediately my friend called the guy in Cebu. He heard what you or I might have expected. “Sorry dude, I don’t know anything about that. Someone in the shipping company must have destroyed it. The bike was in perfect working order when we boxed it up here. I’m really sorry but I don’t know what you want me to do about it. Don’t ship it back to me because I’ve already spent the money on medical bills … sorry”.
Now no one can know with certainty what really happened here. Did a mysterious third party “bust” the bike or did the seller just take advantage of the “always trust another white guy” mindset and ship off a piece of junk for $1200 USD.
We’ll Likely Never Know, But Here’s a Clue About Being Cheated.
My local friend, thoroughly disgusted and stuck with a $1200 USD “piece of junk” in his yard decided to make the best of a bad thing and hired a local Jeepney to carry the busted bike into town to the Kawasaki dealer.
“How much to fix this?” he said to the dealer, expecting the worst.
The dealer looked everything over and said, “Sir, I can’t fix this. The parts needed would cost way more than a new bike is worth … I would be cheating you if I did that. I won’t do it.”
Here’s an alternative. As is this bike is worth about $200 ISD in spare parts and aluminum scrap. A brand new bike like this lists for $1200 USD. I’ll give you $200 USD credit for the Junker and you can ride out today on a brand new bike for $1,000 USD. Comes with three years of registration, a year of service, a year of mandatory liability (no-fault) insurance and a brand new helmet. Also a cute little Kawasaki motorcycle toy that your children will love.”
Gob-struck I Think is the Word to Use.
What ever the correct word is, for the same (actually even less money), my non-trusting friend could have bought a brand new bike in his own town, and made a friend or two along the way.
If you read all this way and still feel I am “full of it” about the “long nose tax” then at least do yourself on favor and find out the “going rate” for a product _before_ you decide to buy from a Filipino business or a fellow American. Just because he’s “white” might not mean he’s trustworthy … for sure. Crookedness and opportunistic cheating us definitely color-blind.
You can get scammed in the Philippines, we all agree, but it certainly won’t always be by a Filipino … or so this old man opines.
On my many visits to RP, I have found what you say to be generally true; However, my dealings with an attorney in Bacolod proved otherwise; According to knowledgeable Pinoy friends i was paying the “long nose” tax and then some, and definitely through the (long) nose. Unfortunately, I was not made aware of being cheated like this until well into the case, at which time it was too late to fire the attorney to “cut my losses.”
Working class Filipinos are some of the most sincere, honest people I have ever known, certainly more so than many Americans.
I guess, though, a lawyer is a lawyer the world over.
Dave,
Great article, I love the fact that you tell it how it is. Recently, my father in law had his scooter stolen. We actually found a Kawasaki website with the manufacture price list, my wife called the dealer in the village to purchase a new one, and he was within 200 pesos of the price on the Kawasaki site. The best part was we wired the money to the dealer and within 1 hour of him signing for the wire, he delivered the bike to my father in law at his farm. The dealer also said he would give 2 free oil change services to ensure the bike stayed in good condition. My wife asked why it was free, his response was simple, you live in America and work hard to care for your family, I hope I can earn your trust to buy another one some day!!!!
There is a sucker born every minute. But with proper due diligence, I wholeheartedly agree. Honesty is the best policy. It is always easier to slip if you allow yourself to frequent slippery places.
A wonderful and skillfully written article. I really appreciate your words and feel I have learned some important things. I will say my wife told me one time that I couldn’t go to the market anymore with her because things always cost more when I went shopping with her. I don’t know if they really did or if it was just her mistaken impression. Thank you for an eye opening and very thoughtful article.
Great article, and very true! Being a nice, respectful person will go a long way towards good business relationships, as well. I think the foreigners who get ‘scammed’ are often those obnoxious blow-hards who complain and joke with the seller about how they will be ripped-off, look skeptical, roll their eyes, and generally insult everyone. People are offended by this and will smile big and take what they can to get even for the big white guy being such a jerk. I would call this the ‘jerk tax,’ and it is probably more common that the ‘long nose tax,’ in reality.
If foreigners are kind and respectful, try to use a little of the local language (are willing to look a little foolish) people usually bend over backwards to serve you! It is an honor to be trusted by the local foreigner.
As for white scammers and suckers… The Philippines seems to collect them! I can’t believe all the foreign guys I have talked to who, “Met a guy from Australia (or the US, or Germany…) who was in on a mining deal that was going to make them all rich.” Unbelievable.
So very true Lola, I agree 100% with what you said.
You made me laugh Lola.
I was approached by a foreigner in Davao a few years back about a Gold Mining investment deal up in Compostela.
“Do you see any Green in my eyes, Sir. 🙂
Hi Dave – Filipinos that would scam a foreigner will also scam locals. I have observed tourists from Luzon are likely to be charged more or be taken advantage of on price, as they are unfamiliar with local culture. It’s not specifically a “Filipino taking advantage of foreigner thing”. Many Filipino friends have told me that the Filipino thinking is to make good profit on one big deal, hence why the Filipino is easily scammed themselves by get rich quick schemes, as opposed to Chinese Filipinos who will generally make more deals with less profit. It also means that the foreigner could be the target of that good profit deal. From my limited experience only, The Chinese Filipino is much better to trade with, they will always do a deal to accommodate, where as I have walked away from many deals with Filipino businesses because they want the higher profit single deal. It’s also demonstrated in the thinking of tricycle drivers in Dumaguete, they will say “How much will you give me”. Standard fare is 9 php, I will say 25 php because I like tricycle drivers, but many a time they might say 50 php, which is way to high. I say 25 php is ok already. Many times they will just drive off. The mindset clearly demonstrated by many, not all Filipinos is to seek the single big profit deal. If I feel like this is the scenario, I just walk away politely. I have walked away in this type of scenario many times.
Hi Dave,
This article is coincidental, I’ve just been reading a biography of John D Rockefeller who’s Father was a Snake Oil Salesman 🙂
Dave;
The new folks should know of “The Buddy Scam” You see the guy all the time, even to shoot the breeze with them and partake of a beer or three once in awhile. Great guy, “Hail fellow well met”. Hey you can trust this guy. Then it happens, “May I borrow P 2,000.00” he’ll ask. What is P2, 000.00 to you and you lend t to them.
Three to four days later they’re at your door handing you the (More than likely) the same amount back. Wow what a guy.
A few weeks later, he’s back now needing a far greater amount. Now be prepared to say goodbye to your money and your new found buddy.
This did happen to me twenty years ago, but I still miss my friend more than the money. But a fine lesson was learned.
Hi Paul – That’s why i don’t lend money to anyone, I just give it away if I have some. Example someone says they really need 2000, I just say money is a little tight, but I can give you 500 and tell them to work out the difference. No need to pay me back of course, because it’s a gift. Naturally I do this with people I am acquainted with. If it is someone I’m less acquainted with, then the amount drops.
The biggest thieves, liars, and con-artists I have ever met were my ex-girlfriends family and extended family.
Murray – I don’t know your ex or her family, but your post made me laugh!
Hey Brenton, when we were together, it was no laughing matter to me. She sacrificed a good life for herself and her son by constantly being influenced by her lazy, drunken, useless family.
Murray – I found your direct use of words funny, not the unfortunate circumstance. Hope things are better for you now.
Dave,
The only scammers I mainly deal with are the Manila taxi drivers. Several times they have really tried to get us. If you know what the rate is they can’t get you.
Papa Duck – Manila taxi drivers are a breed of their own, they are artists at looking for opportunity. They even cry poor to the locals and ask for extra money in advance. Friends tell me they usually say stuff like “Boss boss, I am really struggling to support my family, can you give me a tip?” They say this to Filipinos, imagine how the uncultured foreigner goes then. Not so good. Lol
Papa Duck – Also I have never experienced Taxi Drivers in Cebu or Bacolod behave like the Taxi Drivers in Manila.
Brenton – I think the reason Manila taxi drivers are like that is because they were made like that by, guess who, the passengers themselves. Passengers who allow themselves to be fleeced, and in Manila, there are thousands of foreigners and natives alike who haven’t got a clue in the ways of a big city. You won’t see this in Dumaguete, a relatively small city. The higher the supply of clueless passengers, the higher the temptation to scam. I can’t wait to play games with taxi drivers in Manila. I think I can play with the best of them. LOL
Years ago in Singapore the taxies were horrific, they even made Manila drivers seem fair. A meter law was passed and all people were told at the airport train station and the pier that if the meter was not used the ride was absolutely free. The law was enforced by passengers but if the police were involved the taxi driver was arrested. The following year when I returned every driver used the meter.
I remember those days Paul. You really had to haggle with those Singapore Taxi Drivers.
I made the mistake of once telling the driver I was in a hurry, gee, off he went like a Bat out of Hell, I didn’t think I would live to tell the tale.
Paul,
When we were in Singapore last year the one time we took a taxi, the driver refused the tip we offered him. In Hong Kong they charge you extra for placing things in the trunk.
Yeah, much has changed in the modern Singapore.
John – I think you can play games with the best of them as well. Lol.
Talk about cab drivers asking for advance payment, Brenton. Upon arriving in the Philippines in 2002, my wife and I hired a taxi at the airport to take us directly to the province. The cab driver and I agreed on the price, plus lunch enroute on me and dinner upon arrival in Salaza (Palauig, Zambales) 3 to 5 hours away, depending on how fast he drove. It turned out he made it in 3 hours flat, non-stop, with the help of Red Bull energizing drink.
But prior to leaving the city proper, he asked for an advance to buy groceries for the family and milk for the newborn baby. I said, sure, why not. I was interested in seeing where he lived and all that as a part of my personal enjoyment in experiencing the culture each time I visited. I remembered his house was near an Army base – probably where the 3 Senators involved in the pork barrel scam today are soon headed for confinement. LOL
It was an interesting request to have come from a Manila taxi driver. I don’t even remember if I had subtracted the advance from the price we agreed upon. If I were scammed at the time, I was a willing participant. I have always had a soft heart for my countrymen who try hard, but are less priveleged than I.
Hi John – I would have done the same as long as it was only a portion of the fare. Good cultural learning. As foreigners we are usually happy to pay more, we just don’t want to be charged more.
John,
In May when we were flying to Iloilo we took a taxi from the Coastal Bus Terminal to Terminal 2. First the driver refused to turn on the meter right away, then he took the “long” way there. Anne then got upset and let him have it. Then when we got to the airport he had the nerve to ask for a 500p tip lol. The biggest thing withthe drivers is they want a set rate and not the meter. We don’t mind giving a good tip as long as they are honest. I bet you can really play games with the drivers.
Randy, you are lucky to have Ann serving as your protector and defender with you there in the Philippines. Where will you be without her? LOL
“It’s morally wrong to allow a sucker to keep his money”
W.C Fields.
LoL 🙂
Nice article, I am from honduras , central america. In my country there are 2 prices the locals price and the gringo price .if you all kmow what I mean
Same in London, if it is not a fixed price there is local and tourist price.