Finance app welcomes signing of Anti-Financial Account Scamming Act into law

The country’s leading finance app, GCash, welcomes the signing into law of Republic Act 12010 or the Anti-Financial Account Scamming Act (AFASA), which is crucial for enhancing the security and trustworthiness of digital financial services in the Philippines, ensuring that its users can transact with confidence.

The AFASA punishes financial schemes and imposes stricter penalties for financial crimes, including acting as money mules and engaging in social engineering schemes.

The law provides a stronger legal framework to prosecute financial scammers and imposes severe penalties, including imprisonment and substantial fines.

“The significant increase in digital transactions in recent years is a positive step toward our goal of an inclusive financial system in the country. With the advent of new technologies, however, scammers and fraudsters are able to perpetuate their schemes through and behind money mule accounts, targeting unsuspecting users through social engineering techniques like phishing. AFASA addresses these challenges by expressly prohibiting, punishing, and imposing stricter penalties for financial crimes, including acting as money mules and engaging in social engineering schemes, and by providing financial institutions with enhanced capacity to prevent and deter scams.” said GCash Chief Legal Officer Atty. Maricor Alvarez-Adriano.

Additionally, AFASA also empowers financial institutions, including GCash, by providing them with enhanced capacity to prevent and deter scams.

The new law allows financial institutions to provide more information to the Bangko Sentral ng Pilipinas (BSP), in order for it to investigate accounts that it suspects of being fraudulent.

“At the core of our mission is a commitment to trust and security in the digital space. We will continuously work together with the Bangko Sentral ng Pilipinas (BSP) and our law enforcement agencies on consumer education and awareness. By promoting greater understanding of fraudulent schemes, users will be empowered to identify and avoid potential threats, thereby reducing their risk of falling victim to scams. This aligns perfectly with our commitment to fostering a safe and secure digital environment for all,” added Atty. Alvarez-Adriano.

Under AFASA, scam cases like phishing and account takeovers will be defined as criminal cases of money mule, social engineering, and economic sabotage, with penalties of fines and or imprisonment.

Money Mule shall be defined as those using, borrowing, or allowing the use of a financial account; opening a financial account using fictitious documents to obtain a fraudulent identity; buying or renting a financial account; and recruiting people for these purposes.

Social engineering, on the other hand, will become a criminal act defined as pretending to represent an institution to solicit somebody’s sensitive information and using electronic communications for this purpose.

Financial account scams shall also be treated as economic sabotage by the new law and will be defined as committing money mule or social engineering as a group of three or more persons against three or more persons, through the use of mass mailers, and through human trafficking.

In terms of cybersecurity and collaboration with law enforcement agencies, financial institutions, including GCash, will also have the authority to withhold temporarily for 30 days any transaction deemed suspicious, thus further protecting its users.

“Over the years, we have supported the government’s initiatives to enable a cashless ecosystem in the country. We have forged alliances with law enforcement authorities, namely the Philippine National Police Anti-Cybercrime Group (ACG), the Cybercrime Investigation and Coordinating Center (CICC), and the National Bureau of Investigation (NBI), among others, for a safer digital space. But more than partnerships, we believe that we need tougher laws to pursue perpetrators. We are hopeful that with the passage of AFASA, we can do more to improve the lives of every Filipino,” concluded Atty. Alvarez-Adriano.