Senator Sherwin Gatchalian on Sunday, November 5 urged state regulators to strengthen mechanisms for consumer protection amid the continuing proliferation of online fraudulent activities especially with the onset of the Christmas season. 

Gatchalian, in particular, urged the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), and the Cooperative Development Authority (CDA) to bolster their cybersecurity measures.

“Sa pagpasok ng bonus season, ito ang panahon na mas marami na ring mga kawatan ang umaatake tulad ng nangyari noong mga nakaraang taon (especially during the bonus season, this is that time of year where these fraudsters attack online like what happened last year),” Gatchalian said. 

The senator recalled that sometime in the fourth quarter last year, fake online shops selling counterfeit products increased and scammers creating fake e-wallet apps or those that look like legitimate e-wallet apps have proliferated. 

In the case of banks, the lawmaker zeroed in on the know-your-customer (KYC) processes and other e-wallet platforms, pointing out that most banks now offer online opening of financial accounts. 

He pointed out the “KYC” processes of financial organizations serve as a filter to determine whether the account holder is real or not and to establish some form of accountability.

“It’s about time that we put a lot of emphasis on what the regulators are implementing considering we have already enacted the law for the protection of consumers and financial products and services,” Gatchalian said. 

The lawmaker is referring to Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act of which he is one of the authors. 

The law gives financial regulators broad powers to formulate their own standards and rules to protect consumers from financial fraudsters.

“This is also a shared responsibility, and consumers should be vigilant about safeguarding their personal information,” he stressed.

It is also imperative for financial customers to be well-informed about the available remedies and redress procedures in case of fraud affecting their financial accounts. 

“We want our people to have confidence in our financial system. But if fraudsters can manipulate the system, such as pressuring banks to alter phone numbers without confirming with the account holders, that trust can be undermined,” he emphasized.