Credit card companies said the passage of the SIM Registration Act will cut cases fraud and other illegal activities amid a proliferation of crimes targeting the financial sector since the onset of the COVID-19 pandemic.
The Credit Card Association of the Philippines (CCAP) thus welcomed the law that would require mobile phone subscribers to register their cards and present documents to verify their identities.
The association said fraudulent credit card activities jumped 21 percent since March 2020, with the steep rise amplified by the broad shift to online transactions due to mobility restrictions.
“In the past two years since digital payments accelerated due to the COVID-19 global pandemic, CCAP has been pushing players in the telecommunications sector, regulators and lawmakers to adopt stricter measures and enact laws against SIM-related fraudulent activities,” the association said in a statement.
It was among the groups that lobbied hard for the SIM registration law or Republic Act No. 11934.
“We fully supported the ideals of the SIM Registration Act and that, despite its disapproval in December 2021, we have continued to follow through on the interim measures we can implement through the telecommunications companies and through the National Telecommunications Commission,” CCAP chair Rolando Ebreo said.
Ebreo has high hopes the law would fulfill its purpose of preventing or reducing fraudulent activities.
“With the SIM registration law, we are set, as a nation, to combat that malice and to once again add a layer of protection for our Filipino consumers,” he said.
“It will help mitigate, if not prevent, scam messages that contain links used to lure the victims into giving out their information. It is a realization of our desire to institutionalize measures that protect our customers,” he added.
Meanwhile, CCAP executive director Alex Ilagan said they would also focus on educating customers on scams aimed at compromising their financial accounts.
Ilagan further underscored the important partnership between the industry and the Bangko Sentral ng Pilipinas in alleviating credit card debts via the interbank debt relief program.
“As the effects of the pandemic linger, CCAP and its members will continue to work together in offering more liberal debt restructuring or forbearance programs to allow cardholders in financial distress repay their obligations and regain good credit standing,” he said.