UnionBank, Globe swap data for probe of frauds

MANILA, Philippines — Aboitiz-owned Union Bank of the Philippines has entered into an agreement with Globe Telecom Inc. on data sharing to speed up the resolution of online fraud.

UnionBank and Globe yesterday signed a memorandum of agreement (MOA) to facilitate the exchange of information that will enable both parties to hasten fraud investigations.

The two firms said the MOA complies with Advisory Opinion 2021-06 issued by the National Privacy Commission allowing data sharing for purposes of fraud inquiries.

UnionBank and Globe said the MOA aligns with Memorandum M-2021-059 of the Bangko Sentral ng Pilipinas (BSP). The central bank directive advises financial institutions to share information with third parties to expedite the resolution of fraud investigations.

Globe chief privacy officer Irish Almeida yesterday said the MOA builds up from the established partnerships of the telecommunication giant with banks, e-wallets, and online retailers. She said the MOA provides that all data transfer should be encrypted to heighten security.

According to Almeida, Globe in 2021 blocked about one billion spam messages that could have victimized consumers unaware of online frauds like phishing.

Further, Almeida said Globe deactivated around 5,000 mobile numbers that were found involved in illegal activities that attempted to steal banking data from clients.

On the other hand, UnionBank chief information security officer Joey Rufo said data sharing between the Aboitiz bank and Globe would increase the confidence of customers of both firms, as it allows both parties to exchange information even without a court order that could take months to be issued.

The agreement also authorizes UnionBank and Globe to identify patterns through which their clients are targeted by digital scammers. Any findings from the tie-up can be passed on to authorities in going after syndicates engaged in online crimes.

Rufo said the MOA responds as well to the challenge posed by BSP Governor Benjamin Diokno on the length of time in resolving digital fraud. As the pandemic compelled Filipinos to use electronic platforms, Rufo said victims could now rely on the partnership to speed up the identification of those behind online fraud.

In January, Diokno told the Senate that a total of 42,456 complaints were filed before the BSP’s Consumer Assistance involving financial fraud in 2020 and 2021.

“A majority of these cases have been deemed closed, [but] the process was long and arduous, and for many complaints the resolutions were unfavorable to the consumer,” Diokno said.