Recent worrisome events reveal that even big, long-established firms such as Domestic Systemically Important Banks (DSIBs) are not immune to hacking and data breaches, which may cost these institutions enormous financial loss and reputational harm.
Only in March of this year, Philippine industry groupings predicted that if these assaults continue unchecked, the economic costs might reach up to $10.5 trillion per year by 2025.
A robust collaborative cyber defense among industry actors, including but not limited to government authorities, banks, fintechs, industry associations, and consumer-driven communities, may serve as a significant deterrent to minimize these cybercrimes.
Former National Privacy Commission (NPC) Commissioner Raymund Liboro provided a sobering summary of the predicament that banks and other financial institutions confront when it comes to cyber-attacks: “Highly technology heists and systematic assaults take use of flaws in humans and financial systems.” It is not a matter of if a breach is possible—-it is a question of when it will occur.” Simultaneously, he argues that “cybercrime is man-made, thus it can be avoided and reduced.” The NPC has a responsive regulatory framework that helps [organizations] maintain data privacy resilience by providing the right advice, engaging stakeholders, and limiting risk.”
The main issues about cybersecurity and data protection were discussed in a recent webinar titled “Cybercrime: a Collective Defense,” which was hosted by MB Tech News, a leading news site that promotes the most current technological breakthroughs. Art Samaniego, Cyber Security Advocate, and Manila Bulletin’s Technology Editor moderated the discussion. The webinar was also co-hosted by Digital Pilipinas, a movement that seeks to address long-standing socioeconomic challenges through technological adoption, and Fintech Philippines Association, the leading independent industry association representing the interests and growth of the Philippines fintech community.
Amor Maclang, Convenor of Digital Pilipinas, also said that developing robust cybersecurity that can safeguard the business community from hackers who like to join together in groups is no longer an individual endeavor. “One thing is certain: we will only be stronger if we work together,” she remarked. Sharing our security concerns will help us to learn and respond much more quickly. When one of us is a victim of cybercrime, we are all victims. Collective security is an area for partnership, not competition.”
Maclang also identified the financial system’s “new allies” once its players begin conducting counter-cybercriminal dialogues: “The White Hat Hackers—-” referring to cybersecurity professionals who use online terrorist methods to find and fix flaws in a company system—-“advocates of Open Finance, the academe, and media.”
Atty. Arvin Razon, Director for Legal Compliance and Regulatory Affairs at Open Finance Technology Company Brankas, agrees that the increasing threats posed by cybercriminals necessitate an open environment in which industry players and their partners can discuss issues and collaborate to find solutions. “All of us can react rapidly and work together to repair weaknesses in the system that cyber thieves may exploit,” he said. In the field of data security, we must promote interoperability and collaborative collaborations.”
“Businesses employ technology to communicate to each other using a common language,” Razon said, recommending Open Finance as a method to kickstart these industry talks. Banking has become much easier to accomplish because of technological advancements. We must collaborate because we are more linked than ever.”
Nichel Gaba, CEO, and Founder of PDAX, a local cryptocurrency exchange, discussed how developing technologies may boost corporate transparency and deter scammers. “We now have the technology to make [financial] things far more accessible,” he remarked. Cryptocurrency and blockchain technology are crucial in making these things more accessible and safe.” Fintech technologies like Open Banking and Open Finance might also help to ensure that “financial institutions have a common security measure.”
All of the panelists agreed that the sector has to step up its cybersecurity efforts to safeguard itself and their customers, who have a lot of valuable data that identity thieves and other digital intruders want.
“Cybersecurity and cyber defense is a whole-of-nation, whole-of-society problem,” Maclang said at the end of the webinar, capturing the seriousness of the matter. Can we withstand their assaults as individuals if black hackers operate in groups?
However, communicating security concerns will help us to learn and respond more quickly.
We will never be finished when it comes to security since the world is changing at a breakneck pace. We have to recognize that we won’t be able to achieve it on our own.”
