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In an effort to deal with the problem, the Philippines passed R. 9208, the Anti-Trafficking in Persons Act of 2003, a penal law against human trafficking, sex tourism, sex slavery and child prostitution.The International Federation of Red Cross and Red Crescent Societies stated in 2003 that there were more than 1.5 million street children in the Philippines and many end up in prostitution and drug trafficking in places such as Manila and Angeles City.

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Pagsanjan began to attract an increasing number of child molesters.The former naval base, and current visits by American military have been the subject of protests by welfare groups and activists in Subic.Brandishing placards and chanting slogans, members of WAIL and GABRIELA called for justice for all victims of human rights abuses.In 2005, the Philippine Information Agency reported documented cases of children as young as 10 years old forced into prostitution in Davao.Davao provinces, along with the Caraga region, have become the favorites of child traffickers posing as tourists.In 2008, after receiving on human trafficking activities, police armed with a search warrant raided a residential house at Pleasantville Subdivision in the village of Ilayang Iyam and rescued at least 14 women, three of them minors.

The house had also been raided the previous month, resulting in the rescue of another group of alleged human trafficking victims.

Following the raid a police spokesman, describing the suspect as "a known human trafficker and maintainer of suspected prostitutes in the locality", said that the suspected trafficker would face criminal charges for violation of Republic Act 9208." One 16-year-old child tells of her experience in Subic Bay: She was locked in a room for a month, starved and force-fed drugs and alcohol to ensure she was addicted and could be more easily controlled.

She was often beaten unconscious for refusing to have sex with customers.

The Filipino government began a crackdown on the child sex industry in Pagsanjan and 23 people of varying nationalities were arrested.

Foreign child molesters take advantage of the poverty, with children often being used as sexual currency by their own parents.

The area is a favorite for foreign child molesters seeking children.