Fraudulent financial transactions, including those involving credit card usage increased in 2020 in light of the COVID-19 pandemic, said Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno.
In a virtual media briefing held last Thursday, January 28, BSP Governor Diokno said most other common crimes involve unauthorized or disputed transactions due to disclosure of personal information and phishing e-mails based on personal account information and the use of one-time password (OTP).
Diokno said the most common credit card complaint back in 2019 was about disputed transactions whereas in 2020, it was predominantly about credit card fees and charges.
Further, he noted that payment networks follow a stringent protocol process on the investigation of these frauds.
“In most cases, the charges of fraudulent transactions are normally reversed through a charge-back or liability shared mechanism,” he added.
With the BSP pushing for higher use of safe digital payment options, Diokno added that they have also increased their programs to educate the public “to address risks related to the increased accessibility of innovative digital financial products and services.”
However, he clarified this call being a shared responsibility of the banking public, the BSP, and the BSP-supervised financial institutions (BSFIs).
Diokno said “BSP secures our digital financial system through a comprehensive set of regulations that addresses the increasing propensity and sophistication of cyber-attacks.”
“Collective vigilance is seen to foster greater confidence in the financial system under the new economy,” he added.