Philippine central bank probes complaints of account hacking
- Philippine central bank working with banks for remedial measures
- Social media users have complained of bank account hacking
The Philippine central bank is monitoring a surge in complaints of hacked bank accounts from some users of social media and working with consumer banks to resolve the issue, through measures such as reimbursements, its chief said on Sunday.
The bank is collaborating with the southeast Asian nation’s largest lender, BDO Unibank, and Unionbank of the Philippines to take remedial steps, including reimbursement, Governor Benjamin Diokno said.
“The Bangko Sentral ng Pilipinas will do everything to ensure the safety and integrity of the financial system, as well as the protection of financial consumers,” Diokno added in a statement.
Manila ex-banker jailed over US$81 million Bangladesh cyberheist
BDO is looking into each case and will respond to those affected, it said in a statement, while Edwin Bautista, the president of Unionbank, said its clients were among the banks that received funds from BDO accounts.
“We will not hesitate to take legal action against individuals who use their accounts to facilitate criminal activities,” UnionBank President Edwin Bautista told Bloomberg in a text message. “We have been monitoring and collaborating with BDO,” he said.
Fewer than 10 Unionbank accounts that received funds from BDO accounts had already been frozen, Bautista said, adding that the bank was taking legal steps against users who permit use of their accounts for criminal activities.
The banks have not yet been able to estimate how much was diverted. One of the Unionbank accounts used 5 million pesos (US$99,280) of stolen funds to buy bitcoin on December 11, according to a report from Manila Bulletin, citing an unidentified source.
Criminals have occasionally targeted the Philippines’ banking system.
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In 2016, accounts at Manila-based Rizal Commercial Banking Corp received US$81 million stolen by unknown criminals from the account of the Bangladesh central at the Federal Reserve Bank of New York, before it vanished into Philippine casinos.
The thieves used fraudulent orders on the SWIFT payments system to execute their heist.
Additional reporting by Bloomberg
