AFASA enhances consumer protection


The spread of misinformation has been feared following the game-changing decision by Meta founder and chief executive officer Mark Zuckerberg early this month to do away with the use of third-party fact checkers across the social media platforms – Instagram, Facebook, and Threads.

Yes, Virginia, you and I must be more vigilant as one disturbing fear is the possible increase in cybercrime, which continues to surge at an alarming pace, amidst the passage of the SIM card registration law.

This wicked way prevails. Just recently, I was a victim of cloning with my FB account copied. Well-meaning and dear friends, Chet Espino and Carlo Cruz, reported that my FB account was cloned.

At the onset, instead of removing the cloned account, FB emailed me saying that the questionable account "does not violate its community standard," to which I replied "such standard" considering that my first in the copied account was spelled with a double LL.

Finally, after nearly 10 days, both Chet and Carlo received an FB message: "We've removed the profile that you reported. We reviewed the profile and found that it goes against our community standards." And, they even appreciated the action taken by Chet and Carlo, saying: "Reports like yours help keep FB safe and welcoming for everyone."

Now, it has been observed that identity theft, phishing, and hacking continue to surge in step with the rapid growth of digital financial services.

And as businesses and consumers embrace the growing convenience of online banking, digital wallets, and e-commerce, cybercriminals have seized the opportunity to perpetrate sophisticated scams, leading to significant financial losses and a palpable sense of vulnerability among consumers.

My recent experience brings to mind the passage of Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act (AFASA), which aims to safeguard consumers in this dynamic digital landscape.

You will agree with me that indeed the rise of financial cybercrimes has exposed gaps in consumer protection. All of this underscores the need for more robust legislative measures that are tailor-fit to solve the issues that have befallen us.

These unfortunate increasing phishing attacks, money muling schemes, and social engineering tactics that exploit unsuspecting individuals, resulting in significant financial losses, have eroded public trust in digital banking and payments and have thus created a barrier to the widespread adoption of these essential services, especially as we emerge from the post-pandemic economy.

AFASA, which was passed in July of last year, addresses this challenge head-on by providing a comprehensive legal framework that is designed to protect Filipino consumers, enhance our financial security, and bolster the public's confidence in the new digital financial ecosystem.

An essential feature of the law is the enhanced investigative powers of the Bangko Sentral ng Pilipinas (BSP). The law empowers the BSP to conduct inquiries into financial accounts suspected of involvement in prohibited acts, ensuring that potential threats are identified and addressed swiftly.

In addition, AFASA also mandates the implementation of robust fraud prevention systems across financial institutions. This requirement compels banks and payment service providers to adopt comprehensive measures to detect and mitigate fraudulent activities before they escalate into significant breaches.

The establishment of fraud management systems ensures that suspicious transactions are flagged and investigated, which not only protects you and me, the consumers, but more importantly enhances the overall resilience of the financial sector.

As the wheels of banking churn veer toward the digital environment, I believe AFASA is the lifeblood and could further enhance the growth of digital financial services.

This could, in turn, pave the way for wider and nationwide financial inclusion, which is an aspiration of the BSP.

Talkback to me at sionil731@gmail.com