Online fraud costs 2% loss in global GDP

At least two percent of the global Gross Domestic Product was lost due to increasing cases of online fraud, phishing and scams, Senator Mark Villar said Monday.

Villar, presiding the hearing by the Senate Committee on Banks, Financial and Institutions and Currencies, lamented that the proliferation of online scams threatened not only the potential of online banking but also the stability of the banking system and the hard-earned money of the Filipino people.

"While digitalization and the widespread use of digital finance opened opportunities for the banking sector, it is also apparent that opportunists also devise new methods to take advantage of this emerging financial market," Villar said.

While there's an increasing number of Filipinos using online payment platforms, Villar noted that crimes related to digital financial transactions are also growing.

"A significant number of Filipinos have been targeted by digital fraud attempts and a portion of them eventually fall victim to it," he said.

Complaints flood gov't

The Bangko Sentral ng Pilipinas said it has received more complaints regarding online banking transactions compared to those related to using Automated Teller Machines and credit cards, among others.

In fact, the Anti-Money Laundering Council reported a rise in suspicious transactions in 2020 comprising acts of phishing, skimming, and transactions related to money mules.

The Security Exchange Commission likewise noted a significant rise in complaints related to online fraud committed by online lending platforms.

Villar said as scammers take advantage of their victims, they also rattle their victims' trust in the country's banking and financial institutions.