BSP TO LAUNCH INVESTIGATION OVER GCASH UNAUTHORIZED TRANSFERS

The central bank said it has instructed GXI to swiftly resolve the reported unauthorized deductions from GCash users that occurred over the weekend (Photo courtesy of Reuters/Inquirer)

The Bangko Sentral ng Pilipinas (BSP) has launched an investigation into G-Xchange Inc. (GXI), the operator of GCash, following reports over the weekend that several users experienced unauthorized transfers.

The e-wallet company has attributed to errors in its internal process. In a statement, the central bank said it is closely coordinating with GXI to immediately resolve the reported unauthorized deductions on account balances of affected users and to swiftly complete the process of refunds that it has initiated.

“BSP has likewise required GXI to submit regular updates on its actions on the matter. GXI assured that all accounts of GCash users remain secure and that they are now in the process of refunding the deductions,” the BSP said.

“The BSP will investigate the incident further to identify possible vulnerabilities and review compliance with regulations and policies,” it added.

The BSP’s investigation reflects its commitment to upholding consumer protection in the fintech space amid the growing reliance on e-wallets and digital transactions in the Philippines.

Meanwhile, GXI has assured the BSP that all accounts of GCash users are secure. GXI has also stated that the refund process for affected accounts is already underway.

One of the GCash user Comedian Pokwang lamented how she lost money through unauthorized transactions by 30 unregistered numbers.

Furthermore, BSP encourages affected users to coordinate with GXI for the immediate resolution of their complaint. “If not satisfied with GXI’s handling, consumers may escalate concerns to the BSP Online Buddy.”

A multi-sectoral alliance has called on the financial technology (fintech) industry to bolster its cybersecurity protocols to safeguard consumers and businesses from increasingly sophisticated financial scams.  

According to the group, Fintech firms should regularly update users on emerging threats and best practices for online security, while offering resources to help individuals, especially the vulnerable, avoid scams and contribute to a safer financial ecosystem.

Source: Philippine Star 

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