Globe hails new anti-fraud law to combat financial Scams

Globe Telecom has expressed strong support for President Ferdinand Marcos Jr.’s recent enactment of the Anti-Financial Account Scamming Act (AFASA), aimed at combating the rising tide of online financial scams through stringent deterrence and enforcement measures.

The law seeks to “protect all persons from falling prey to the various cybercrime schemes by regulating the use of financial accounts, and preventing their use in fraudulent activities.” Globe believes AFASA will enhance the Cybercrime Prevention Act and the SIM Registration Act, bolstering defenses against sophisticated scam tactics.

“As a service provider that deals with fraudsters every day, Globe is grateful that the Philippines now has a law that is up to date and addresses fast-evolving threats to the security of our financial system,” said Ernest Cu, Globe President and CEO.

Cu highlighted the law’s comprehensive coverage of emerging fraud methods, including money mules, social engineering schemes, and tech-assisted fraud involving SMS, email, and generative AI.

He added, “This ultimately gives regulators and law enforcers sharper teeth in stopping financial fraud.” Cu also noted that the new law would support Globe’s proactive measures against financial fraud, such as blocking person-to-person SMS and bank-related phishing and vishing.

In the first half of 2024, Globe blocked over 2.74 million bank-related spam and scam messages, a significant decline of 43.56% compared to the 4.85 million messages blocked in the same period of 2023. This reduction highlights the effectiveness of Globe’s collaboration with banks and other financial institutions to curb financial fraud.

Cu reaffirmed Globe’s dedication to stringent monitoring and blocking of potential financial fraud in its network.

“Globe will remain a staunch ally of the government and financial institutions in beating fraud. Through the passage of AFASA, we look forward to a safer financial environment for our customers and the public,” he said.

AFASA mandates banks and other financial institutions to implement robust security measures and advanced fraud management systems to safeguard financial accounts.

It empowers the Bangko Sentral ng Pilipinas (BSP) to investigate and scrutinize financial accounts linked to illicit activities and to obtain cybercrime warrants for electronic communications involved in violations of the law, circumventing typical bank secrecy and data privacy constraints.

The law imposes severe penalties for financial fraud, including imprisonment of 6 to 8 years and fines up to Php 500,000 for money mule schemes; prison terms of 10 to 12 years or fines up to Php 1 million for social engineering schemes; and life imprisonment or fines up to Php 5 million for economic sabotage.