How SM Group leverages AI, tech vs data theft

The SM Group banks on artificial intelligence (AI), biometrics, online verification technology, and literacy projects with other businesses and government agencies to ensure cyber security across its diverse operations. These efforts aim to protect transactions from fraudsters who seek to steal and alter company and customer data, regardless of the industry.

SM Prime Holdings Inc., the real estate arm of the Sy-owned conglomerate, maximizes its AI-based security information and event management (SIEM) system.

This allows the company to record transactions, such as log-ins on its computer systems and other digital assets, so it can detect abnormal patterns, alert legitimate security personnel, and spoil possible insider and outsider cyberattacks.

SIEM also enables data-gathering and analyses from third parties to identify trends in cyber hacking.

“This tool collects logs from various network components into a central log management system. This enables the company to respond to cyber security threats in a faster turnaround time. The company also annually conducts Information Security Awareness and Cyber Security Risk Management training across the group to address human factors in cyber security management,” SM Prime discloses in its document for investor relations.

According to global market researcher Statista, real estate websites were the 12th most targeted by cyber criminals from 2022 to 2023. IBM said data from real estate firms contain valuable information to hackers like customers’ bank accounts, email and home addresses, and mobile numbers.

Using a secure sockets layer (SSL), SM Prime Holdings and other SM subsidiaries are able to block hackers from stealing and modifying sensitive data being transferred between businesses and their customers.

“SSL keeps internet connections secure and prevents criminals from reading or modifying information transferred between two systems. When you see a padlock icon next to the URL in the address bar, that means SSL protects the website you are visiting,” Kaspersky, a global cybersecurity provider, says.

The SM Group ensures its tools are updated and its human resources are upskilled as its property website has allowed users to reserve condominium units and pay their reservation fees digitally.

Through the group’s cybersecurity measures, SM Development Corporation, the residential developer, has protected over 183,000 buyers from erroneous transactions.

Meanwhile, BDO Unibank Inc. integrates finger-print biometrics and card lock features in its mobile app to ensure funds are not being channeled to fraudsters.

BDO adds fingerprint scanning of app users to confirm legitimacy of the user, aside from requiring users to register their devices and type in the one-time PIN and six-digit PIN for some transactions.

To further prevent criminals from accessing BDO funds through debit cards, the bank uses a card lock its clients can quickly set on the app after their cards have been stolen or lost. BDO immediately sends clients a confirmation of the lock request.

Data from Statista show the financial industry as the number one target of cyber criminals in the past two years.

BDO and its subsidiaries have participated in several dialogues with other players in the industry and the Bangko Sentral ng Pilipinas to gain insights on digital technologies and human resource development since digital bank transfers surged during the pandemic.

The Philippine National Police reported a total of 8,177 cybercrime incidents in the first half of the year. The three most prevalent crimes were online selling scams with 1,613 cases, investment scams with 650 cases, and debit/credit card fraud with 528 cases.

BDO Unibank Inc. and BDO Network Bank Inc., its rural banking arm, continue to explore satellite technologies to speed up data-gathering on internal and customer transactions in spotting suspicious behaviors.

In May, BDO Network Bank, Inc. First Vice President Norman Vic Aychocho gave and received insights from other participants in the Rural Bank Strengthening Program (RBSP) Technology and Innovation Forum which tackled digital tools, regulations on online transactions, and training programs for bank workers.

Through this forum, BDO aims to help the central bank improve RBSP Technical Assistance which provides financial advisory, digitalization, and capacity-building for the rural banking sector, the more vulnerable group to cyberattacks as it often experiences delayed delivery of cybersecurity knowledge updates and equipment due to poor internet and limited transport infrastructure.