As the Philippines shifted to the new normal, digital and mobile banking also proliferated.
Digital and mobile banking became essential services in the Philippines during the pandemic as they provide online transactions that offer safety and convenience to their clients. According to the Bangko Sentral ng Pilipinas (BSP), 20.1% of monthly transactions occurred digitally during the last quarter of 2020.
Cyber Fraud Attack Involving BDO and Unionbank
Last December 2021, almost 700 account holders of Banco De Oro Unibank (BDO Unibank) became victims of the recent cyber fraud attack in digital and mobile banking involving another bank, Unionbank of the Philippines (Unionbank). Some funds from the BDO customers worth Php 5 million are transferred illegally to some accounts in Unionbank.
UnionBank chief technology and operations officer Henry Aguda stated that they are eyeing six persons of interest yet chose not to name them. The information regarding the identified individuals has already been transferred to the National Bureau of Investigation (NBI) and Philippine National Police (PNP).
“As one of the receiving banks, Unionbank stands in solidarity with the entire banking industry and the relevant government agencies in fighting against the cybercriminals. We are collaborating closely with BDO. In fact, we’ve started collaborating even over the weekend,” Aguda said.
In January 2022, the NBI arrested two Nigerian nationals: Ifesinachi Fountain Anaekwe, alias Daddy Champ and Chukwuemeka Peter Nwadi, and three Filipinos: Jherom Anthony Taupe, Ronelyn Panaligan, and Clay Revillosa regarding the scam. NBI Cybercrime Division chief Vic Lorenzo explained that the suspects sent out phishing emails and were able to generate OTP to access the victims' accounts. Fortunately, the receiving bank (Unionbank) freezes the funds from the unauthorized transfers making the cash unavailable for withdrawal.
In the statement released by the BDO, the bank acknowledges the sophisticated fraud technique of the suspects, vows to reimburse the affected clients, and strengthen their existing security controls to avoid another incident in the future.
According to Ramon Jocson, Bankers Association of the Philippines cybersecurity committee vice chairman, around Php 1 billion losses are recorded due to bank frauds amidst the increase in digital and mobile banking due to the pandemic. 57% of online fraudulent transactions victims came from the small and medium businesses sector.
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Written by: Julie Ann Duyongan
Layout and Design by: Dan Kurt Buenaventura
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