Globe Telecom Inc. welcomed the signing of the Anti-Financial Account Scamming Act (AFASA) as a crucial step in combating online fraud.
The law aims to “protect all persons from falling prey to the various cybercrime schemes by regulating the use of financial accounts, and preventing their use in fraudulent activities.”
The law will complement the Cybercrime Prevention Act and the SIM Registration Act, strengthening security measures against ever evolving scam tactics by fraudsters,” said Globe president and chief executive Ernest Cu.
“As a service provider that deals with fraudsters every day, Globe is grateful that the Philippines now has a law that is up to date and addresses fast-evolving threats to the security of our financial system,” said Cu.
“We especially appreciate how the law covers in great detail various emerging fraud methods, including the recruitment of money mules, social engineering schemes, and other modes assisted by tech, including SMS, email, and even generative AI. This ultimately gives regulators and law enforcers sharper teeth in stopping financial fraud,” he said.
Cu said the law would serve to reinforce Globe’s ongoing efforts against financial fraud, including proactive blocking of person-to-person SMS and bank-related phishing and vishing.
Globe reported that in the first half of 2024, it blocked over 2.74 million bank-related spam and scam messages, a decline of 43.56 percent from 4.85 million messages it blocked in the same period of 2023.
This reflects how Globe’s collaboration with banks and other financial institutions to curb financial fraud has been working, the company said.
Cu reaffirmed Globe’s commitment to stringent monitoring and blocking of potential financial fraud in its network.
“Globe will remain a staunch ally of the government and financial institutions in beating fraud. Through the passage of AFASA, we look forward to a safer financial environment for our customers and the public,” he said.
AFASA mandates banks and other financial institutions to implement stringent security measures and robust fraud management systems to protect financial accounts.
It empowers the Bangko Sentral ng Pilipinas to thoroughly investigate and scrutinize financial accounts potentially involved in illicit activities.
It also authorizes the BSP to apply for cybercrime warrants for electronic communications implicated in violations of this law, effectively bypassing the usual constraints imposed by bank secrecy and data privacy regulations.
The law penalizes financial fraud schemes with heavier penalties, including imprisonment of 6 to 8 years and fines of up to P500,000 for money mule schemes; prison time of 10 to 12 years or fines of up to P1 million for social engineering schemes; and life imprisonment or fines of up to P5 million for economic sabotage.
