Credit card fraud surges in the Philippines as Covid-10 lockdowns boost online payments

Credit card fraud in the Philippines skyrocketed 21 per cent since the Covid-19 pandemic started in early 2020, an industry group said. This is the result of more and more people resorting to online shopping amid recurring lockdowns across the country as they are forced to change payment behaviours to avoid face-to-face transactions.

The Credit Card Association of the Philippines (CCAP), an umbrella organisation for 18 major credit card players in the country, said in a January 6 statement that the industry “has been experiencing high volumes of fraud cases causing financial detriment,” with many incidents involving scammers gaining access to one-time passwords to transact online.

“The perpetrators have carried out fraud by using various digital payment platforms,” Alex Ilagan, the CCAP’s executive director, noted.

The CCAP said the “virtual account takeover” scam had the highest number of incidents. It is a scam that involves taking over and gaining access to one-time passwords (OTP) of customers, enabling criminals to perform OTP-validated online transactions.

Call for tighter rules for telecom companies

The organisation called on regulators and telecommunication companies to tighten rules when providing customers with mobile phone numbers or changing them, and create a process to report numbers used to defraud people, it said.

“There are no existing laws which protect the consumers from this mode of attack from the fraudsters,” the credit card group said, adding that it was supporting a bill requiring persons to register their Philippine SIM cards.

The CCAP further urged the country’s telecom companies to tighten their existing know-your-customer processes when accepting new prepaid and postpaid customers, and also particularly during the identity verification process when customers request to change mobile numbers declaring a lost or stolen mobile unit.



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Credit card fraud in the Philippines skyrocketed 21 per cent since the Covid-19 pandemic started in early 2020, an industry group said. This is the result of more and more people resorting to online shopping amid recurring lockdowns across the country as they are forced to change payment behaviours to avoid face-to-face transactions. The Credit Card Association of the Philippines (CCAP), an umbrella organisation for 18 major credit card players in the country, said in a January 6 statement that the industry “has been experiencing high volumes of fraud cases causing financial detriment,” with many incidents involving scammers gaining access...

Credit card fraud in the Philippines skyrocketed 21 per cent since the Covid-19 pandemic started in early 2020, an industry group said. This is the result of more and more people resorting to online shopping amid recurring lockdowns across the country as they are forced to change payment behaviours to avoid face-to-face transactions.

The Credit Card Association of the Philippines (CCAP), an umbrella organisation for 18 major credit card players in the country, said in a January 6 statement that the industry “has been experiencing high volumes of fraud cases causing financial detriment,” with many incidents involving scammers gaining access to one-time passwords to transact online.

“The perpetrators have carried out fraud by using various digital payment platforms,” Alex Ilagan, the CCAP’s executive director, noted.

The CCAP said the “virtual account takeover” scam had the highest number of incidents. It is a scam that involves taking over and gaining access to one-time passwords (OTP) of customers, enabling criminals to perform OTP-validated online transactions.

Call for tighter rules for telecom companies

The organisation called on regulators and telecommunication companies to tighten rules when providing customers with mobile phone numbers or changing them, and create a process to report numbers used to defraud people, it said.

“There are no existing laws which protect the consumers from this mode of attack from the fraudsters,” the credit card group said, adding that it was supporting a bill requiring persons to register their Philippine SIM cards.

The CCAP further urged the country’s telecom companies to tighten their existing know-your-customer processes when accepting new prepaid and postpaid customers, and also particularly during the identity verification process when customers request to change mobile numbers declaring a lost or stolen mobile unit.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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