New law vs financial scams a welcome step to deter fraud

 

New law vs financial scams a welcome step to deter fraud

Globe applauds the recent enactment of the Anti-Financial Account Scamming Act (AFASA) by President Ferdinand Marcos Jr. This law is anticipated to tackle prevalent online scams through enhanced deterrence and enforcement measures.

 The law’s objective is to “shield all individuals from various cybercrime schemes by regulating the use of financial accounts and preventing their exploitation in fraudulent activities.”

Globe perceives this law as a complement to the Cybercrime Prevention Act and the SIM Registration Act, fortifying security measures against the constantly evolving scam strategies employed by fraudsters.

“As a service provider that confronts fraudsters daily, Globe is thankful that the Philippines now possesses a law that is current and addresses the rapidly evolving threats to our financial system’s security,” expressed Ernest Cu, Globe President and CEO.

“We particularly value how the law extensively covers various emerging fraud methods, including the recruitment of money mules, social engineering schemes, and other tech-assisted modes, including SMS, email, and even generative AI. This ultimately equips regulators and law enforcers with more potent tools in combating financial fraud,” he added.

He stated that the law will bolster Globe’s ongoing initiatives against financial fraud, including proactive blocking of person-to-person SMS and bank-related phishing and vishing.

In the first half of the year, Globe blocked over 2.74 million bank-related spam and scam messages, a decrease of 43.56% compared to the 4.85 million messages blocked in the same period of 2023. This demonstrates the effectiveness of Globe’s collaboration with banks and other financial institutions in curbing financial fraud.

Cu reiterated Globe’s commitment to rigorous monitoring and blocking of potential financial fraud within its network.

“Globe will continue to be a steadfast ally of the government and financial institutions in combating fraud. With the enactment of AFASA, we anticipate a safer financial environment for our customers and the public,” he said.

AFASA requires banks and other financial institutions to implement stringent security measures and robust fraud management systems to safeguard financial accounts.

It authorizes the Bangko Sentral ng Pilipinas (BSP) to conduct thorough investigations and scrutiny of financial accounts potentially involved in illicit activities. It also empowers the BSP to apply for cybercrime warrants for electronic communications implicated in violations of this law, effectively circumventing the usual restrictions imposed by bank secrecy and data privacy regulations.

The law imposes heavier penalties for financial fraud schemes, including imprisonment of 6 to 8 years and fines of up to Php 500,000 for money mule schemes; prison time of 10 to 12 years or fines of up to Php 1 million for social engineering schemes; and life imprisonment or fines of up to Php 5 million for economic sabotage.

To learn more about Globe’s efforts against cybercrime, please visit www.globe.com.ph.

FAQs

  1. What is the Anti-Financial Account Scamming Act (AFASA)? AFASA is a law recently enacted by President Ferdinand Marcos Jr. to tackle prevalent online scams through enhanced deterrence and enforcement measures.

  2. How does AFASA complement existing laws? AFASA complements the Cybercrime Prevention Act and the SIM Registration Act by fortifying security measures against the constantly evolving scam strategies employed by fraudsters.

  3. What are the penalties imposed by AFASA for financial fraud schemes? AFASA imposes heavier penalties for financial fraud schemes, including imprisonment of 6 to 8 years and fines of up to Php 500,000 for money mule schemes; prison time of 10 to 12 years or fines of up to Php 1 million for social engineering schemes; and life imprisonment or fines of up to Php 5 million for economic sabotage.

  4. What measures has Globe taken against financial fraud? Globe has taken several measures against financial fraud, including proactive blocking of person-to-person SMS and bank-related phishing and vishing. In the first half of the year, Globe blocked over 2.74 million bank-related spam and scam messages.

  5. Where can I learn more about Globe’s efforts against cybercrime? You can learn more about Globe’s efforts against cybercrime by visiting their official website at www.globe.com.ph.

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