BSP steps up cybersecurity

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has stepped up cyber surveillance as well as collaboration with law enforcers as cyber criminals and fraudsters continue to take advantage of the shift in consumer behavior amid the coronavirus disease 2019 or COVID-19 pandemic.

In a virtual press conference, BSP Governor Benjamin Diokno said the BSP also enhanced its regulations to boost the financial system’s resilience amid the rise in digital accounts in the country.

Data from the BSP showed that around four million digital accounts were opened among banks and non-bank electronic money issuers from March 17 to April 30, while new web sign-ups and app downloads doubled in the first four months.

“As more Filipinos take advantage of online payment, remittance and other technology-enabled financial services – we need to ensure that potential risks are well-managed. Thus, we will continue to find innovative strategies to sustain the resilience of the financial services industry as we transition towards the new economy,’’ Diokno said.

For one, the BSP has issued memoranda reminding BSP-supervised financial institutions to employ multi-layered security defenses against financial crimes during the pandemic.

Diokno said the regulations also underscore the importance of vigilance against fraudsters and cyber criminals amid the significant shift to digital financial services.

Frauds include donation/charity scams, investment and product scams, and money mules wherein persons are recruited to lend personal accounts to receive online transfers from illegal sources under the guise of charity for COVID-19 donations.

Moreover, fake or malicious websites and phishing emails turn out as the predominant entry points of cyber criminals.

Diokno said the BSP rolled out a cybersecurity awareness campaign through Faceebook, Twitter, among others specific to COVID-19 scams and fraud last March 30.

“Proper cyber hygiene and ensuring strict confidentiality of personal information are some of the most basic but effective means of avoiding frauds,” he said.

Likewise, The central bank also increased cyber surveillance in close coordination with banks amid the shift in consumer behavior during the lockdown.

Aside from identifying potential cyber threats, coordinated surveillance enables the immediate implementation of preventive countermeasures.

It also reinforced collaboration with key stakeholders including the Philippine National Police and National Bureau of Investigation in the investigation of referred cases and subsequent prosecution of apprehended cyber criminals as provided under Republic Act 11469 or the Bayanihan to Heal as One Act.