Yuchengco-led Rizal Commercial Banking Corporation is warning the public that fraudsters, disguised as valid merchants on e-commerce sites and platforms, are now scamming online users.
The bank said fraudsters may create fake profiles that appear legitimate, offering high-demand goods at significantly lower prices. Enticed by bargains, unsuspecting consumers submit their payment details, only to receive nothing in return.
Often, these fake sites also harvest the buyer's personal and financial information for further fraudulent activities.
The emergence of these new fraud types is posing greater risks to consumers, businesses, and financial institutions.
RCBC Chief Information Security Officer Carlos Tengkiat cautioned that millions of pesos can potentially be lost as online commerce expands as "We’ve seen an increased usage of data breaches in social engineering and account takeovers."
The current fraud set also utilizes past data breaches, with fraudsters banking on people reusing the same usernames and passwords across different platforms.
For instance, fraudsters might access a list of compromised email addresses and passwords from a previous data breach and then use that information to attempt logins on various platforms, hoping some individuals have reused their credentials.
Once they gain access, they can make unauthorized purchases, transfer funds, or even lock out legitimate users.
RCBC Enterprise Fraud Risk Head Jericho Konrad Uy said cyber criminals still use the same attack vector, phishing. The difference is that they use various tactics to gain their victims’ trust faster, such as “riding: on the banks’ promotions and system migrations.
To combat these new fraud types, RCBC has implemented several measures including additional controls to prevent continuous fraud-like behavior in its apps and websites.
The bank participates in Bancnet’s program for faster tracing and alerting among member banks. Bancnet is the interbank network connecting the ATM networks domestic and offshore banks.
Uy added that the universal bank constantly updates its security control measures to remain current with existing and emerging fraud trends. Clients are made aware of recent fraud trends by sending them security reminders via different channels.
RCBC currently leverages advanced technology in its anti-fraud strategies. Artificial intelligence (AI) and machine learning analyzes large amounts of data related to account activities, flagging possible fraudulent behaviors.