After announcing their intention two months ago, the Bankers Association of the Philippines (BAP) and the Department of Justice (DOJ) will finally sign a Memorandum of Understanding (MOU) this Friday, Feb. 4, to detect and prevent cybercrime and put the lawbreakers behind bars.
**media**
The MOU enables both BAP and DOJ to work closely together to combat cybercrime that has been spiraling out of control last year and hit a peak when the country’s biggest bank, BDO Unibank Inc., was hacked in December by cybercriminals known as “Nagoyo” or the Mark Nagoyo heist group.
“The BAP is set to sign (an) MOU with the DOJ on Feb. 4 (to) cement the strong partnership between the banking industry and the National Government in the fight against cybercrime,” said BAP in a statement on Sunday, Jan. 30. “This MOU will facilitate the creation of a collective, coordinated and strategic cyber response that is crucial in this period of heightened cyber criminality,” it added.
The BAP also said that partnering with the justice department will help keep the public “safe” and “make cybercriminals pay for the crimes they have committed.”
“Promoting cybersecurity in the banking system is a joint effort in as much as it is a core aspect of the nation’s security and the economy’s stability,” the group said.
In the same statement, BAP members praised the National Bureau of Investigation (NBI) for catching the cybercriminals behind the Nagoyo scam.
BAP president Jose Arnulfo A. Veloso said he is grateful for the NBI for their “successful collaboration in holding cybercriminals accountable for what they have done.”
“Their actions demonstrate that cybercriminals will never go unpunished for victimizing the Filipino banking public and stealing their hard-earned savings,” said Veloso.
“The BAP and its member banks are fully confident in the capabilities of our law enforcement and judicial system. We trust that the perpetrators of the scam and their victims will be afforded a just and speedy resolution,” he added. Veloso is president and CEO of Philippine National Bank, the fifth biggest bank in the Philippines.
Former BAP president, Nestor V. Tan, who is also the president and CEO of BDO, continues to assure his bank’s clients that all of their cybercrime-related concerns will be immediately addressed. BDO has identified 700 accounts that has been compromised.
“We continue to make investments and enhancements in our security systems to assure our banking clients will have a safe and secure banking experience,” said Tan.
Last week, government-owned Land Bank of the Philippines (Landbank) – the country’s second biggest bank -- was on the news due to an alleged phishing scam of many of its teacher-clients. However, the bank has denied that their systems were hacked and that it was a device-related phishing attack.
Landbank president and CEO, Cecilia C. Borromeo, also BAP’s first vice president, said the banking industry will do its part in promoting cybersecurity. “Your bank will always be with you every step of the way. This is why we encourage the public to continuously be vigilant in conducting their online transactions. Suspicious messages should be immediately reported to the authorities. The banks have dedicated personnel to handle these incidents to ensure protection of our clients,” said Borromeo.
Philippines’ fourth largest lender, Bank of the Philippine Islands (BPI), is also assuring the banking public that it is closely monitoring its systems on a highly regular basis since hackers attack in the same frequency.
“The banking industry will always be a partner of the National Government to ensure every Filipino will be safe against cybercriminals,” said BPI president and CEO, Jose Teodoro K. Limcaoco. “Aside from investments in our cybersecurity systems, we closely coordinate with government authorities such as the NBI and share information that has led to the apprehension of cybercriminals.”
BAP second vice president, Hans B. Sicat, for his part, said a capable law enforcement agency such as the NBI is crucial to ensuring a strong banking system. “As we move towards the digitalization of our banking system, a key role in ensuring the safety of Filipinos in cyberspace is the swift and resolute enforcement of rule of law,” he said.
The NBI has arrested five suspects --- two Nigerians and three Filipinos – behind the Nagoyo scam. The hackers stole an undisclosed amount from BDO last December 10 to 11 and transferred the stolen digital cash to a “Mark Nagoyo” account in Union Bank of the Philippines.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they will release the results of its own investigation into the BDO hacking crisis by Monday, Jan. 31.
The BSP has set up a task force of cyber, anti-money laundering and legal experts to probe BDO’s cybersecurity lapses and the KYC (Know Your Customer) issues of Union Bank.
The BSP is also expected to announce the extent and gravity of penalties and sanctions that will be imposed against the involved banks for cybersecurity breaches and possible violations of the KYC rules.