Safeguarding FinTech

A digital age where financial transactions are increasingly conducted online, the Philippines is grappling with a surge in cybercrimes, particularly card-not-present fraud. According to the Philippine Daily Inquirer, the Bangko Sentral ng Pilipinas (BSP) has reported a staggering 5,211 incidents of this type of fraud in 2022 alone, amounting to a significant P467 million in losses. As the country faces a rising tide of digital financial crimes, the urgency for legislative measures to counteract these threats has become more apparent than ever.

The Alarming Rise of Card-Not-Present Fraud

Card-not-present fraud involves scammers obtaining crucial payment details without physically presenting a card to merchants. This method accounted for 31 percent of all cyber incidents reported to the BSP in 2022, emphasizing the need for swift action to protect consumers and financial institutions alike.

Phishing and Identity Theft: A Dual Threat

While card-not-present fraud takes the lead, phishing and identity theft are not far behind. In 2022, the Philippines witnessed 6,295 phishing incidents amounting to a staggering P623 million in losses. Account takeover or identity theft, ranking third, involved 3,104 reported incidents with losses totaling P409 million. These statistics underscore the multifaceted nature of cyber threats facing the nation.

BSP's Call to Action: The Anti-Financial Account Scamming Act (Afasa)

To combat the rising tide of digital financial fraud, the BSP is advocating for the swift passage of the Anti-Financial Account Scamming Act (Afasa). The proposed legislation aims to prohibit and penalize various forms of digital financial fraud, including phishing and the facilitation of scams by money mules. Afasa also grants the BSP limited authority to examine and investigate financial accounts and e-wallets involved in prohibited acts, exempting the central bank from existing bank secrecy and data privacy laws to gather essential information.

The Crucial Role of MSSPs in Cybersecurity

As the threat landscape evolves, so must our approach to cybersecurity. Working with a Managed Security Service Provider (MSSP) like Directpath Global Technologies (DGT) becomes increasingly vital. MSSPs offer a comprehensive suite of services, including Mobile Threat Defense (MTD), Extended Detection and Response (XDR), Vulnerability Assessment and Penetration Testing (VAPT), SOC2 compliance, Vulnerability Risk