Cybersecurity landscape: defending systems against breaches
Navigating through the digital landscape requires the Philippine banking industry to put up more defenses and preventive measures against cyberattacks, data breaches, and illicit online activities. This is crucial as banks carry the responsibility of protecting customers and their information, securing funds, preventing financial losses, and increasing the public’s trust in the industry.
In an email interview with The STAR, the cybersecurity committee of the Bankers Association of the Philippines (BAP) said even though much work has been done to strengthen cybersecurity, more efforts have to be made.
“Cybersecurity remains one of the top priorities for the entire banking industry as ensuring the safety of the banking public is crucial to ensuring that their trust in the financial system will remain,” the BAP said.
According to data from the Philippine National Police, cybercrime cases climbed by 68.98 percent in 2023 from a year ago.
Majority of the cybercrimes were online scams with 14,030 cases, 94.6 percent higher than the 7,208 incidents in the previous year. The other cybercrimes are identity theft, online threats, data interference, computer-related fraud, love scam, cyber libel, and violence against women and children.
The rising number of cases can be attributed to several factors like the public being more willing to report and ask for help from authorities, the BAP said.
“BAP member-banks have been proactive in various fronts, such as constant communication campaigns on cybersecurity and updating banking apps to fortify cybersecurity systems,” the BAP said.
Big banks are also exploring the potential of artificial intelligence (AI) and how it could help boost cybersecurity. This includes using voice detection to determine the authenticity of a client.
“We foresee AI as playing a bigger role when it comes to banking in general, and its impact will become truly pronounced when it comes to cybersecurity,” the BAP said.
“On the BAP’s end, we continue to advocate for reforms in our legal and regulatory frameworks to hold cybercriminals accountable for their crimes, such as stronger penalties to deter these actions,” it added.
The BAP also listed several measures that banks have done throughout the years to protect their consumers and their hard-earned savings from illegal breaches.
“For example, banks now offer the option for users to set up individual PINs before approving a money transfer, which today is a stronger form of protection compared to traditional One-Time Passwords,” the BAP said.
Mobile banking apps now come with regular software updates as well, which is important to address any existing flaws in an app’s cybersecurity system.
Banks also communicate constantly with their clients about the latest trends in cybersecurity over text messages, emails or social media posts. These include detecting common signs of cybercrime, such as phishing, and other changes such as the removal of clickable links in messages.
But amid the proactive efforts of banks to strengthen cybersecurity, the banking public must also do their parts to prevent these crimes from happening. Consumers must proactively seek the latest information on digital trends and safety measures, the BAP said.
Officials from the Bangko Sentral ng Pilipinas (BSP) earlier said the central bank received around 31,000 consumer complaints as of end-September 2023. Most of these complaints were related to e-money and account management.
The Bangko Sentral together with the BAP are also pushing for legislative measures, like the Anti-Financial Account Scamming Act (AFASA), to help address the rising number of crimes involving banks, e-wallets, and other financial institutions.
The proposed AFASA aims to prevent and penalize financial cybercrimes, imposing harsher penalties for illegal acts committed under the Revised Penal Code, such as online selling and investment scams, phishing, and other schemes of fraud.
“To supplement member-banks efforts in communicating with their clients and enhancing their cybersecurity systems, the BAP must step up when it comes to legal and regulatory developments. Cybersecurity will be part of our core agenda for this year, and the years to come,” the BAP said.
The BAP will also continue its strong partnership with the BSP and the Congress to ensure that legal and regulatory frameworks are updated when it comes to cybersecurity.
“These reforms must be anchored on ensuring cybercriminals are held accountable and deterred from their actions, while at the same time ensuring the industry fully complies with standards at ensuring their systems are secure in the online world,” the BAP added.