Telco intensifies measures against online fraud attacks

CEBU, Philippines - Ayala-led Globe Telecom has introduced security measures in its online services in response to the rising threat of fraud activities such as phishing attacks and identity theft online.

Globe Labs, its developer, said the solutions help address the security challenges in the Philippine banking sector.

It noted that fraud acts usually victimize bank customers who have online accounts.

“While usernames and passwords are supposed to be confidential, such sensitive information sometimes fall into the wrong hands, thus making it imperative for customers to use another form of authentication to thwart unauthorized access to their accounts,” it said in a statement.

Armando Encarnacion Jr, Globe Labs business development manager, said the use of one-time passwords (OTPs) is one of these measures. OTP is sent to the registered mobile phone number to complete the login process. It is unique in every login and expires after a few minutes.

The developer also introduced the Sponsored Access Solutions (SAS) and Telco APIs (application program interface) during the recent Asean Financial Institution Conference to fight online scams.

SAS bridges the gap of internet connectivity or data access for customers while API allows banks to leverage on additional security layer for customers’ online transactions.

Encarnacion explained that creating more value for customers particularly in the banking sector through these self-serving tools or apps increases “usage, branding and eventually result in higher customer retention.”

Earlier, the Bangko Sentral ng Pilipinas (BSP) told local banks to put in place measures that would protect bank clients from fraudulent activities.

Due to the apparent evolving nature of online scams, the BSP advised banks to enhance their security and customer awareness initiatives to preserve the public’s trust on the financial industry.

Globe said that as e-commerce and mobile banking continue to grow in South East Asia, banks are realizing how technology impacts their business while ensuring that their industry remains competitive and secure.— Carlo S. Lorenciana (FREEMAN)