Cybercrime Wreaks Havoc on Philippines’ Finance Industry, Losses Reach P1 Billion

The COVID-19 pandemic has brought significant challenges to the country, and unfortunately, cybercriminals are taking advantage of the situation. The Bankers Association of the Philippines (BAP) has reported that financial institutions have suffered a staggering P1 billion ($19.6 million) in losses due to cybercrime.

Combating Cybercrime

To address this growing menace, BAP has signed a memorandum with the Department of Justice aimed at bolstering information-sharing and collaboration against cybercrimes. The association will also launch a series of campaigns to raise awareness about cybersecurity and educate the public on how to protect themselves from these illicit activities.

Raising Awareness

Ramon Jocson, vice chairman of BAP’s cybersecurity committee, warned that the problem is getting worse, with more people falling victim to phishing scams and other forms of cybercrime. “Banks do not shoulder all losses as some incidents involve clients who gave away personal identification or one-time passwords,” he pointed out.

Update to Cybercrime Prevention Act

In light of this growing concern, BAP is pushing for an update to the decade-old Cybercrime Prevention Act, which was enacted in 2012 when most crimes involved stolen automated teller machine cards. The association is also seeking the enactment of a bill against “mule accounts,” which are used by cybercriminals to launder money.

Staying Vigilant

BAP President Wick Veloso emphasized that the banking industry must remain vigilant and proactive in addressing this threat. “As banking and financial transactions become more convenient and accessible, so has it led to increased sophistication on how crimes are perpetrated. To us in the banking industry, this means we always have to be one step ahead.”

Key Takeaways:

• Financial institutions in the Philippines have suffered P1 billion ($19.6 million) in losses due to cybercrime
• BAP has signed a memorandum with the Department of Justice to combat cybercrimes and launch awareness campaigns
• The association is pushing for an update to the Cybercrime Prevention Act and the enactment of a bill against “mule accounts”
• Banks must remain vigilant and proactive in addressing this growing threat