Recent alarming developments and incidents demonstrate that even formidable, long-established companies such as Domestic Systemically Important Banks (DSIBs) are not immune to hacking and data breaches, which can cost these organizations enormous financial loss and reputational damage.
Only in March of this year, Philippine business associations estimated that if these attacks continue unabated, the economic costs could reach up to $10.5 trillion per year by 2025. according to Digital Pilipinas, FinTech Philippines, and MB Tech News.
Art Samaniego, Manila Bulletin Tech News Editor, moderated the “Cybercrime: Collective Defense” virtual forum, which took a whole-of-nation, whole-of-society approach to security in the age of Open Finance.
The discussion was led by National Privacy Commission Commissioner Mon Liboro; Atty. Arvin Razon, Brankas’ Data Privacy Officer, and Nichel Gaba, the Founder and CEO of the Philippine Digital Asset Exchange (PDAX).
The growing number of hacking and cybercrime attacks on some of the Philippines’ most important institutions necessitates a collective cyber defense. Financial institutions, banks, fintech, and other members of the private sector must band together and collaborate to protect their systems and the personal information of their thousands of customers. The dialogue must begin immediately in order to result in an Open Finance Framework capable of bringing about transparency, accountability, and a stronger wall of defense against online intruders.
Strong collaborative cyber defense among industry stakeholders, such as government agencies, banks, fintechs, industrial groups, and consumer communities, is a powerful deterrent to reducing cybercrime.
Samaniego, Cyber Security Advocate and Manila Bulletin’s Technology Editor moderated the discussion. The webinar’s other partners were Digital Pilipinas, a movement that seeks to address long-standing socio-economic challenges through technological adoption; and Fintech Philippines Association, the leading independent industry association representing the interests and growth of the fintech community in the Philippines.
Former Commissioner Raymund Liboro of the National Privacy Commission (NPC) gave a sober overview of the situation that banks and other financial institutions face when it comes to cyber-attacks: “Highly technological heists and systematic attacks exploit vulnerabilities in human beings and the banking systems. It is not a question of whether a breach is possible—but rather when it will happen.” At the same time, he maintains that “cybercrimes are man-made, so they can be prevented and mitigated. The NPC has a responsive regulatory framework and provides [organizations] data privacy resilience by giving correct advice, engaging stakeholders, and mitigating risk.”
Amor Maclang, Digital Pilipinas Convenor, also pointed out that creating strong cybersecurity that can protect the business community from hackers, who tend to band together in groups, is no longer an individual initiative. She said, “One thing is absolutely clear: we will only be stronger if we work together. Sharing our security issues will allow us to learn and adapt much faster. When one of us is victimized by cybercrimes, all of us are victimized. Collective security is not a field for competition, but for collaboration.”
Maclang also named the “new allies” of the financial system once its players start conducting counter-cybercriminal dialogues: “The White Hat Hackers—” referring to cybersecurity professionals who employ the methods of online terrorists to find flaws in a company system and then fix them—“advocates of Open Finance, the academe, and media.”
Atty. Arvin Razon, Director for Legal Compliance and Regulatory Affairs of Open Finance Technology Company Brankas, agrees that the increasing threats posed by cybercriminals require an open environment where the industry players and their partners can discuss issues and come up with ways to solve them together. He commented, “All of us can adapt quickly and work collectively to close holes in the system that cyber criminals can exploit. We need to advocate for interoperability and collaborative partnerships in data protection.”
Razon also recommended Open Finance as a way to jumpstart these industry conversations: “Businesses use technologies to talk to each other using a common language. Tech has made it easy for us to do banking. Because we are more connected than ever, we have to work together.”
Nichel Gaba, CEO and Founder of homegrown cryptocurrency exchange PDAX, explained how nascent technology can further develop industry transparency which can keep the cybercriminals at bay. He said that currently “we have the tech to have [financial] products much more accessible. Crypto currency and blockchain are integral in helping make these products accessible and safe.” Fintech systems like Open Banking and Open Finance can also help see to it that “finance institutions have a standard security measure.”
All the panelists concurred that the industry must step up when it comes to their cybersecurity efforts in order to protect themselves and their customers who own tons of valuable data that is attractive to identity thieves and other digital invaders.
“We took a risk management approach. We are really for the promotion of preventing and mitigation,” added Liboro.
The urgency of the situation was captured by Maclang’s final words in the webinar: “Cybersecurity and cyber defense is a whole-of-nation, whole-of-society concern. Black hackers work in groups—can we survive their attacks as individual actors? But sharing security issues will allow us to learn and adapt faster. We will never be done when it comes to security as the world will change in increasing speed. We have to admit that we can’t do it alone.”
Digital Pilipinas, FinTech Philippines, and MB Tech News hosted and presented the webinar.