MICROCAPITAL BRIEF: Cybercrime Up During Pandemic As FSP Clients, Staff Increase Usage of Digital Payments, Remote Technologies

Amidst the COVID-19 pandemic, the use of digital payment services has risen, leading to an increase in fraud and thus a renewed urgency to educate and otherwise protect consumers of these services. Financial services providers also are boosting their vigilance in safeguarding their information technology (IT) systems. Dr Adesola Adeduntan, CEO of FirstBank Nigeria, reportedly noted, “The increased adoption of digital channels by customers and the activation of remote work model[s] by financial institutions have widened the cyber-attack surface…. Cyber-criminals are exploiting the crises to launch tirades of attacks on financial institutions’ IT networks.”

In an effort to counter these risks, Philippine Payments Management Incorporated (PPMI), which oversees the Philippines’ National Retail Payment System (NRPS), is encouraging users to rely solely on “official websites and verified social media accounts” to protect themselves from scams. PPMI has also requested that banks and issuers of digital money regularly update their systems and otherwise seek to increase digital security.

Discussing the increased usage of digital payments, PPMI Chairman Justo Ortiz stated, “We continue to partner with BSP [Bangko Sentral ng Pilipinas], our banks and e-money issuers in creating a more conducive environment for digital transactions especially as the government continues to ease restrictions and while adjusting to the new normal. We support the call of BSP Governor Benjamin Diokno to our kababayans to shift to the easy, safe, secure and convenient e-payments for…transactions even after COVID-19.”

Established in 2017, PPMI seeks to promote accessible financial services, including by easing the transition from cash to online payments. PPMI members are, in turn, members of one or both of the automatic clearing houses PESONet and InstaPay. PESONet has 58 member institutions, and InstaPay has 45 members.

BSP is the central bank of the Republic of the Philippines. Established under the provisions of the New Central Bank Act of 1993, BSP is headquartered in Manila and has three regional offices and 18 branch offices. In addition to traditional central banking activities, BSP participates in advocacy programs concerning microfinance, financial education and consumer protection.

First Bank commenced operations in Nigeria as an arm of the Bank of British West Africa Limited. It became a public company in 1970 and offers commercial banking services as of 2020, while its 10 affiliates provide trusteeship, capital-market trading, pension-fund custodian, mortgage financing, insurance brokerage, small-scale banking and foreign exchange services. As of 2019, First Bank Group reported total assets of NGN 6.2 trillion (USD 15.9 billion).

By Jessica McLeod, Research Associate

Sources and Additional Resources

This Day article
https://www.thisdaylive.com/index.php/2020/05/25/banks-offering-access-to-low-interest-funds/

Business Inquirer article
https://business.inquirer.net/298304/consumers-shopping-banking-from-home-warned-vs-rash-of-digital-payment-fraud-hacking

PPMI homepage
https://www.philpayments.org.ph/

BSP homepage
http://www.bsp.gov.ph/

FirstBank Nigeria homepage
https://www.firstbanknigeria.com/

FirstBank Nigeria financial report
https://www.fbnholdings.com/wp-content/uploads/2020/04/FBN_Holdings_Plc_2019_Annual_Report.pdf

Previous MicroCapital news on FirstBank Nigeria
https://www.microcapital.org/microcapital-brief-etisalat-first-bank-of-nigeria-merge-easywallet-firstmonie-mobile-money/

Previous MicroCapital news on BSP
https://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-allows-micro-banking-offices-mbos-to-approve-new-deposit-accounts/

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