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BSP, BDO take action on reported hacking, allays public fears

By Noel Lontoc
admin December 14, 2021

TRIGGERED by mounting complaints on social media of several bank accounts reportedly being hacked and funds being transferred to the cybercriminals’ fictitious accounts in another bank, the Bangko Sentral ng Pilipinas (BSP) has announced that it is already coordinating with banks involved in the recent cyber attacks in order to allay public fears and ensure ample protection to bank clients.

In a statement, BSP governor Benjamin Diokno disclosed that after monetary authorities observed the surge in consumer complaints in recent days, the BSP has coordinated with the banks involved—BDO Unibank and Union Bank of the Philippines—to immediately undertake remedial measures, including the reimbursement of the money lost by the affected clients.

Both banks said they have taken measures to protect their clients from fraud.

“Rest assured that we continue to collaborate and engage stakeholders to ensure the safety and integrity of the financial system as well as the protection of financial consumers. BSP will do everything to ensure the safety and integrity of the financial system as well as the protection of financial consumers,” Diokno stated.

Starting Dec. 11, various posts surfaced on social media such as Facebook about BDO clients complaining of illegal transactions using their accounts to transfer money to the UnionBank accounts of a certain ‘Mark Nagoyo’. The word ‘nagoyo’ means “to be fooled” in the Filipino language.

BDO said it was aware of a “sophisticated fraud technique” that has affected some of its clients and the bank’s president, Nestor Tan, revealed that the incident “affected a 10-year-old web service that is for phase-out” even as a replacement for it would be available early next year.

“We have already implemented additional security controls to block further attempts and continue to protect bank credentials. We assure our affected innocent clients that we will reimburse their losses,” Tan enthused.

BDO added that its clients who use their online banking services have been required to update their passwords.

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