Globe ramps up security in SIM swap process amid rising fraud cases

MANILA, Philippines — Ayala-led Globe Telecom has committed to further strengthen its robust security measures after credit card issuers reported a 21-percent jump in fraudulent credit card transactions due to SIM card swap.

The digital solutions provider said it is one with various industry sectors in establishing measures to prevent and stop online fraud after the Credit Card Association of the Philippines (CCAP) raised a red flag over the rising fraudulent activities.

“As a service provider in the fast paced telco industry, we will strike a balance between serving our customers’ legitimate requests for SIM replacement due to lost or stolen devices, or defective SIMs, while providing more than adequate safety measures, both physical and digital, to protect customers from fraudsters and scammers,” Globe said in a statement.

It emphasized the principle of shared responsibility between customers as data subjects and the institutions that serve customers as personal information controllers and processors to protect customer data.

The telco said its Channel Management Group continued to implement a formal process and procedures manual for postpaid and prepaid SIM replacement, including rigorous know-your-customer (KYC) procedures to establish customer identity.

“To be clear, we do not want our customers to fall victim to any form of online fraud. Having this objective in mind, Globe has invested substantially to put in place a robust data security framework supported by international experts,” it said.

The digital solutions provider vowed to continue to review and improve its processes and controls to meet the dynamic needs of customers.

It also committed to regularly educate customers on information security and data privacy through awareness campaigns and advisories on all customer-facing channels.

“We constantly remind our customers that they should not share personal information such as birth dates, anniversary dates, school or company ID details, TIN, passport details, and most especially, never share the MPIN to another person, as this is what often leads to highly targeted identity theft and is the main cause of SIM swap cases,” Globe said.

Alex Ilagan, executive director of the Credit Card Association of the Philippines (CCAP), earlier said telcos and the National Telecommunications Commission (NTC) should institute measures to stem the rise in fraudulent credit card transactions due to SIM card swap.

“The industry has been experiencing high volumes of fraud cases causing financial detriment. These perpetrators have carried out fraud by using the various digital payment platforms to commit crime,” Ilagan said.

Ilagan said the highest number of incidents of credit card fraud losses is the “Virtual Account Take Over” scam that involves taking over and gaining access to one-time passwords (OTPs) of unknowing customers, enabling fraudsters  to perform OTP-validated online transactions.

“The fraudsters’ techniques and equipment are continuously being enhanced and innovated on a daily basis. Many of these techniques and equipment are dependent on the fact that they need to communicate with the consumer with virtual anonymity,” he said.