Financial institutions

A fraud monitoring system for financial institutions is now required

FRAUD MONITORING. BSP now requires financial institutions to have an automated, real-time monitoring and fraud detection system to deal with the increase in cyberattacks against consumers. BSP Governor Benjamin Diokno said these systems should also be linked to the FIs’ comprehensive financial crime prevention system. (PNA file photo)

MANILA – Financial institutions (FIs) regulated by the Bangko Sentral ng Pilipinas (BSP) are now required to have an automated and real-time monitoring and fraud detection system to deal with the growing incidents of cyber fraud.

During a virtual briefing on Thursday, BSP Governor Benjamin Diokno said he recently issued Circular No. 1140 as an amendment to the Information Technology Risk Management Framework after their oversight showed that cyberattacks and illegal schemes affect two or more FIs simultaneously.

Diokno said FIs’ automated fraud monitoring systems, along with their anti-money laundering system, “should be linked or integrated to have a cohesive and comprehensive financial crime prevention system.” .

Financial institutions are also encouraged to use interactive platforms for their consumer education program, he said.

The circular is expected to reduce losses from fraud and cybercrime and boost the central bank’s bid to further increase digital financial transactions in the country.

“BSP believes that a holistic and coordinated approach among industry players is needed to ensure that funds cannot be easily misappropriated by fraudsters and cybercriminals. With this in mind, PASB will continue to engage with relevant stakeholders to ensure policy frameworks and oversight actions are effective and responsive in a rapidly changing cybersecurity environment,” Diokno said.

He said the adoption of digital payments in the country continues to expand thanks to a steady growth in the use of interoperable facilities, such as PESONet electronic funds transfer facilities and InstaPay, the national code standard. QR called QR PH, and e.Gov pay, a web-based system. facility that the public can use to deposit and pay contributions and payments of government contributions and loans, among other things.

Diokno said that out of 21.8 million transactions amounting to PHP 1.3 trillion in 2021, PESONet transaction volume and value reached 26.4 million and PHP 1.9 trillion, respectively, at this day.

He said InstaPay’s volume at the end of April this year had increased by 32.7% to 166 million from 125 million transactions in the first four months of last year.

“The growing use of digital payments is helping us move closer to our goal of having a cashlite company,” he added.

Diokno said the central bank “continues to ensure that consistently important payment systems or SIPs, which ultimately facilitate the settlement of digital payments between banks, follow standards that are on par with global practices to ensure safety and reliability”. (NAP)