94% of BDO hacking victims reimbursed

MANILA, Philippines — BDO Unibank Inc. has reimbursed 94 percent of all customers affected by a sophisticated fraud technique in December, according to Bangko Sentral ng Pilipinas Governor Benjamin Diokno.

He said the country’s largest lender has vowed to fully reimburse the financial losses of the remaining victimized clients.

The BSP chief said both BDO and Union Bank of the Philippines are fully cooperating with the ongoing probe of the hacking scheme.

Last December, hundreds of depositors of BDO complained of several unauthorized electronic fund transfers via InstaPay to a fictitious Mark Nagoyo account in UnionBank.

The Sy-led bank immediately started the reimbursement of all the stolen funds to more than 700 account holders, while UnionBank froze several bank accounts related to the illegal activity.

Last month, the National Bureau of Investigation (NBI) announced the arrest of five individuals tagged in the massive online fraud.

The NBI identified the suspects in a statement as Nigerian nationals Ifesinachi Fountain Anaekwe, alias Daddy Champ and Chukwuemeka Peter Nwadi. The agents also arrested Jherom Anthony Taupa, Ronelyn Panaligan and Clay Revillosa.

Diokno said the central bank would continue to coordinate with law enforcement agencies, relevant government bodies, including the Anti-Money Laundering Council (AMLC), and key stakeholders to strengthen cybersecurity.

Likewise, he said the BSP is also working closely with Congress for the passage of measures on SIM registration and anti-mule accounts.

“These measures are seen to deter fraud and other financial crime and improve the handling of consumer complaints. Together with the recently passed Financial Consumer Protection Act, we will raise standards for market discipline, fair treatment, and transparency for the benefit of financial consumers,” the BSP chief said.

Diokno earlier told members of the Senate committee on banks, financial institutions, and currencies that financial losses based on 42,456 complaints filed with the BSP reached P2 billion between 2019 and 2021.

For 2021, Diokno said financial losses amounted to P540 million, wherein complaints related to the use of internet banking and mobile banking accounted for 45.2 percent as the COVID served as catalyst to digitalization.