Sen. Risa Hontiveros. Photo by Bibo Nueva España/Senate PRIB.
MANILA, Philippines — The recent spate of unauthorized transactions, scams, and other irregularities involving mobile financial services has prompted Sen. Risa Hontiveros to call for a Senate probe.
Her proposed inquiry is contained in Senate Resolution No. 1234 filed on Wednesday.
“We need to take action on the complaints of our fellow countrymen who are victims of scams or hacking in mobile financial services, who seem to have no one to turn to for help in recovering their stolen money,” Hontiveros said in Filipino in a statement on Thursday.
“We must implement a system that enhances regulatory oversight over the fintech sector, so Filipinos can trust that their hard-earned money is safe — even online,” she added.
Although there are existing rules and regulations governing the financial technology or fintech sector, Hontiveros said there is “no legislative framework yet in place to ensure stability and transparency, build public trust, and promote inclusion vis-à-vis this class of services.”
“A lot of people are benefiting from mobile financial services, especially those who are ‘unbanked’ or unable to open a bank account. We need a law that will protect the interests of every Filipino using digital wallets, especially in cases of scams, hacking, or other irregularities,” Hontiveros said in Filipino.
GCash alone, she said, has an estimated 76 million users who posted P6-trillion transactions in 2022.
But last weekend, users of the country’s leading mobile wallet reported unauthorized transactions with P1,000 or P2,000 being deducted from their accounts “while they were sleeping.” The money was reportedly transferred to accounts connected to unknown phone numbers.
READ: Missing funds prompt BSP probe of GCash
Similar incidents also occurred in 2023 when multiple GCash accounts were compromised using “phishing attacks” staged through various online gambling platforms, Hontiveros noted in the resolution.
READ: GCash: E-wallets of users affected by transaction disruption adjusted
“The list of risks and complications that threaten the earnings of mobile financial service users grows longer every day. We urgently need upgraded policies to ensure that mobile financial service providers and fintech firms observe the necessary level of care and accountability in handling digital transactions,” she added.
In a statement, GCash reported that it has completed the necessary wallet adjustments for its affected users.
“Rest assured that customer accounts are safe, and customer account security will always be our top priority,” it added.
To prevent similar incidents in the future, GCash committed to enhancing its systems and procedures and continue safeguarding all transactions.
READ: #GSafeTayo: GCash to roll out ‘double authentication’ to arrest unauthorized transactions
“We will continue to work with relevant law enforcement agencies to investigate these incidents, and we encourage our users to remain vigilant against scammers,” it added.