Two local technology groups have called on the fintech industry, particularly e-wallet firms, to institute stronger cybersecurity measures and consumer protection in the wake of recent unauthorized fund transactions on the GCash e-wallet platform.
In a statement, newly organized cybersecurity organization Protecta Pilipinas urged the entire fintech industry to implement strong cybersecurity measures that protect both consumers and businesses.
“We advocate for the prioritization of robust security protocols, such as multi-factor authentication, end-to-end encryption, and real-time fraud detection systems. Leveraging advanced technologies like artificial intelligence and machine learning can help proactively identify and mitigate threats, even as these same tools are used by cybercriminals,” the group said on Tuesday, Nov. 12.
“We believe that building consumer trust requires transparency and education. 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,” it added.
Protecta Pilipinas said combating financial scams is a collaborative effort among fintech companies, regulators, cybersecurity experts, and consumers in order for the industry to stay ahead of evolving risks.
“We encourage the upholding of regulatory standards and the conducting of regular audits to ensure that fintech companies maintain the highest security and compliance mechanisms,” it said.
On the other hand, CLICK Partylist, which is pushing for digital literacy and consumer protection, is calling for stronger legislative and regulatory action to protect e-wallet users across the country.
According to Nick Conti, first nominee of CLICK Partylist, the situation reflects the urgent need for enhanced security standards to safeguard Filipinos who rely on digital wallets.
“E-wallets like GCash have become essential to daily life for millions of Filipinos, offering convenience and broadening access to financial services,” Conti stated.
“Yet, with that convenience must come a guarantee of safety, especially for users who entrust these platforms with their hard-earned money. These incidents show that it’s time to implement stronger security measures and safeguards.”
In response, the group has laid out a plan to ensure consumer protection within the expanding digital finance sector.
First among its proposals is the establishment of stricter e-wallet security protocols. CLICK envisions mandatory security features, such as multi-factor authentication (MFA) and end-to-end encryption, along with real-time AI-based fraud detection systems that can identify and halt suspicious transactions before they result in financial loss.
This, it said, would provide an additional layer of protection for users and enhance their trust in digital financial services.
Additionally, CLICK is pushing for a proactive education program aimed at helping users recognize and avoid potential security threats.
“It’s crucial that consumers are equipped to protect themselves from fraud, especially in an environment where digital scams and phishing attacks are on the rise,” Conti said.
“An informed public is a safer public, and e-wallet providers have a responsibility to educate users on digital security best practices.”
CLICK’s proposals extend to financial protection as well, with the party advocating for mandatory insurance coverage for e-wallet funds to protect users from unexpected losses.
Unlike banks, which insure deposits through agencies like the PDIC, e-wallets currently lack this safeguard, leaving users vulnerable to potential financial loss due to security breaches, the group said.
“By requiring platforms to insure funds, we can give users peace of mind knowing that, should they fall victim to unauthorized transactions, they will be compensated,” explained Conti.
This provision, he said, is especially significant for small business owners and individuals who depend heavily on e-wallets for their daily transactions and business operations.
A critical aspect of CLICK’s proposal is the establishment of a Digital Wallet Ombudsman within the Department of Information and Communications Technology (DICT).
This dedicated office would address complaints, oversee investigations into security incidents, and enforce penalties on platforms found negligent in safeguarding user data and funds.
“We need a dedicated advocate for consumer rights in the digital economy, someone who can hold e-wallet providers accountable and ensure they meet the standards expected of them,” Conti asserted.
In addition, CLICK Partylist called for transparency from e-wallet providers, advocating for mandatory disclosure of security incidents.
Under this policy, companies like GCash would need to publish regular reports detailing the scope of breaches, response actions taken, and outcomes for affected users.
This transparency, it said, would empower consumers to make more informed choices about which digital platforms they trust with their funds and data.
