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Union Bank of the Philippines, run by Aboitiz, and Globe Telecom Inc., run by Ayala, have entered into an information-sharing agreement to combat online banking fraud that preys on customers.
In a statement on Friday, UnionBank said the deal was signed on March 24.
As part of the agreement, Globe will provide UnionBank with information about cell phone numbers potentially used by fraudsters to assist in online banking fraud investigations.
For its part, UnionBank said it would share relevant information needed to pursue investigations in accordance with the Data Privacy Act and the Data Sharing Agreement.
The alliance between UnionBank and Globe comes as online fraud has become a growing threat with the increase in digital transactions, especially during the pandemic.
“Currently, when it comes to gathering information for fraud investigations, banks and telecom operators must first go through a cumbersome process of court orders. This partnership will make this process much faster and is a step forward in working with the BSP to ensure a safe and secure digital economy for all,” said UnionBank Chief Information Security Officer Joey Rufo.
“Furthermore, this partnership is the first of its kind in the Philippines between a telecom operator and a bank, making it a real game-changer.”
Globe’s head of information security, Anton Bonifacio, said the agreement goes even further in the existing collaboration between the telecom operator and the banks.
Currently, banks report phishing schemes to Globe, which the telecommunications company investigates and blocks accordingly.
Privacy Commissioner John Henry Naga praised the two companies for their partnership.
“I would like to commend Globe and UnionBank for executing this agreement although it is not required under data privacy law. This shows the continued efforts of our stakeholders to promote privacy and protection data within their organizations,” Naga said.
Citing the Second Quarter 2021 Financial Crime Report from Feedzai, a US-based company specializing in artificial intelligence-based financial crime solutions, UnionBank said that 93% of bank frauds committed during the period were online.
Among the many ways in which online banking fraud is committed is through the use of mobile numbers in a scheme called “smishing”.
The scheme is done via SMS or short messaging services. An author uses an anonymous phone number, claiming to be a representative of a reputable company, to extract sensitive personal information from unwitting victims, such as one-time passwords (OTPs) and credit card numbers. credit.
According to UnionBank, this in turn allows them to commit fraudulent financial transactions, usually at the expense of the victims.
UnionBank said it believes its partnership with Globe will help expedite the collection of data in investigations of fraud related to the use of mobile numbers, as the agreement removes the need for court orders for such an exchange of information. — News VBL, GMA
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