BSP penalizes BDO and UnionBank over hacking incident!

The Bangko Sentral has authorized sanctions against BDO Unibank and UnionBank of the Philippines over the hacking incident that impacted depositors.

Bangko Sentral ng Pilipinas (Photo from Philippine Star)

BSP: Banks should be proactive in terms of protecting their depositors

To recall, BDO reportedly allowed fund transfers of PHP 50,000 per day while UnionBank permits this transaction with up to PHP 500,000 limit. Some of the victims got interviewed regarding the incident and they claimed that they did not recall clicking on any malicious link. 

Aside from that, they haven't received any SMS prompts nor OTP requests that will notify them that someone logged into their account. Shortly after that, Banco De Oro allegedly altered its terms and conditions to "shall not be liable for any loss or damage" sustained by clients who use its online banking services from hacking or any other security breaches

According to BSP, it has completed its investigation into the unauthorized access of accounts with BDO and fund transfers mostly to accounts with Union Bank.  It explained that the hacking incidents stemmed from a compromised web service.

On the other hand, there were no details yet about the sanctions for the two banks. The Bangko Sentral just pointed out that the sanctions imposed highlight the importance of continuously enhancing risk management systems involving cybersecurity, anti-money laundering, and combating terrorism and proliferation financing.

In addition to this, the sanctions strengthen the need for banks to take a proactive perspective in ensuring that their depositors are protected enough from these incidents.

UnionBank released a statement that it has worked with BDO and BSP on the incident. The bank also noted that they were able to quickly help BDO recover and return to customers "a sizeable amount of the stolen funds.

All the recommendations of BSP to avoid such incidents have been implemented and there were no monetary penalties [imposed on us]. We have committed to an increase in capital charges to fortify our operations.

Meanwhile, BDO Unibank President Nestor Tan added that they would comply with the sanction. He said that they will team up with BSP to guarantee a more secure banking environment.

BSP Governor Benjamin Diokno said that the hacking incident is a reminder that they should continue to enhance our defenses against cyber threat actors to protect the integrity of the financial system and the interests of depositors.

What do you think?

Source: Inquirer