In the Philippines where 52.8% of monthly retail payments in 2023 were done digitally, fraudsters are increasingly targeting Filipinos with online schemes that are too good to be true. Gaps in digital literacy allow them to cheat unsuspecting victims out of their money by promising to fast track applications for financial products and services if victims share their names, passwords, and other details or pay an “advance fee.” Victims remain responsible for transactions processed under their names despite what fraudsters may have led them to believe.
As fraudsters get more savvy with their methods and operate on a large scale through “scam centers,” the recently signed Anti-Financial Account Scamming Act (AFASA) prevents financial fraud involving e-wallets, bank accounts, and other financial accounts by penalizing cybercriminals and disincentivizing them from targeting more consumers.
Knowledge is Power
Being vigilant against scammers starts with awareness about their common schemes. Money muling involves fraudsters opening a financial account using a fake name or another person’s information, buying/renting and selling/lending a financial account, or hiring another person to act as money mule to gain money. Simply, this occurs when a person uses/sells fake or stolen information, or poses as someone else to access their money.
An example of this is scammers are using social media as a platform to sell accounts or data that are being used to create fake accounts and/or set-up a fake business online. These can lead to your information being used and implicate you for crimes you didn’t even commit.
Social engineering, on the other hand, is obtaining another person’s identifying information through deception or fraud, which leads to fraudsters’ unauthorized access or control over their financial account. In some cases, they pose as employees of an organization to try to get your information through call or messaging via text or social media, and access your online banking or e-wallet accounts. They may say there’s an issue with your account or on-going promo to trick you to give out your card number, PIN, password etc., to get into your account.
When these acts are done in a large-scale by a syndicate (a group of three people or more) aimed to victimize consumers, it is referred to as economic sabotage. Under AFASA, any person/group found guilty of committing these punishable acts will face imprisonment and fines depending on the severity of the case.
Aside from financial loss and having your personal information compromised, another consequence of being a victim of financial account scams is its negative impact to your credit score that may prevent you from applying for loans or credit cards in the future. As such, it’s really important to discern and verify whether a transaction is legitimate or not before pushing through.
Avoiding and reporting scams
If you are a victim of fraudsters, immediately report to the company’s consumer assistance mechanism. You may also report to the cybercrime division of the Philippine National Police (PNP) and the National Bureau of Investigation (NBI) or the Enforcement and Investor Protection Department (EIPD) of the Securities and Exchange Commission (SEC) at epd@sec.gov.ph.
Remember to transact only with legitimate companies, especially those with proper registrations with the SEC and regulated by the Bangko Sentral ng Pilipinas (BSP) and a public track record of fair business practices. Do ample research to evaluate if a company’s website, mobile application, and social media pages are verified and secure. Refer to the list of all registered online lending applications or search the database Check with SEC. If an online lending application is not on the list or the database, they are not legitimately operating with a financing or lending license or registration. Transacting with unauthorized lenders’ mobile apps and ads may put your money at risk.
Sa Tala, Buo ang Tiwala
Recognizing the prevalence of online scams, Tala, the world’s first fintech company for the Global Majority, protects and promotes the safety and well-being of its customers across three continents. It welcomes the Philippine government’s response to the prevalence of cybercrimes in the financial services industry as well as its efforts in protecting the public’s financial accounts and imparting knowledge of various fraudulent schemes through the AFASA.
Tala reminds the general public that it only transacts through the Tala mobile app downloaded from the Google Play Store, not from any unauthorized platforms or channels. Report any suspected scams or fraudsters using Tala’s name and/or logo here.
About Tala
Tala is a global technology company building the world’s most accessible financial services. Their financial services provide customers with flexible, convenient, online credit to help support the unbanked and underserved population. Tala has given more than 40 million loans totaling more than 4 billion USD to more than 8 million people across three different continents. Customers have used Tala products to start and expand small businesses, manage day-to-day needs, and pursue their financial goals with confidence. Start your journey into financial freedom: https://tala.ph/borrow/.
For questions about legitimate digital lending platforms, visit gotala.co/help or interact through the official Tala app. Tala is operated by Tala Financing Philippines Inc., a licensed financing company with SEC Registration No. CS201710582 and Certificate of Authority No. 1132, and a registered operator of payment system, with OPS Registration No. OPSCOR-2023-0010. Always study the terms and conditions and the disclosure statement before proceeding with any loan transaction. Tala is regulated by the Securities and Exchange Commission, with email address at flcd_queries@sec.gov.ph.
