19 November 2017
visit www.atos.net

Philippine banks testify to Senate over recent system glitches and scams

22 June 2017  |  8510 views  |  0 Binary

Representatives of two of the Philippines' biggest banks, BPI and BDO Unibank, on Wednesday reassured a hearing of the Senate committee on banks, financial institutions, and currencies that they have addressed recent failures that saw a 26 hour system shutdown at BPI and a spate of ATM compromises at BDO.

Earlier this month an internal data processing error at BPI caused account balances to seemingly inflate, lose money or become negative. After first acknowledging the customer issues the bank later issued a statement to clarify that "transactions occurring between April 27 and May 2" were "double-posted as of June 6" affecting 1.5 million of the bank's 8 million clients.

After identifying the root cause of this error, it temporarily suspended access to electronic channels for more than a day to allow for rectification.

At the Senate hearing Ramon Jocson, BPI executive president and head of the Enterprise Services Group, told the panel that the programmer owned up to her mistake and had been transferred to another area. He also reassured the panel that their investigation had confirmed that the programmer had no links to external syndicates or groups.

The bank also told the panel that the mistake had occurred as the bank is in the middle of upgrading its deposit system from end-of-day batch to 24/7 processing, which it hoped to complete by the end of this year. To help avoid such significant outages in future it also said it plans to look at its recovery processes and implement more restore points.

Representatives of BDO Unibank were called by the Senate to report on a recent spate of ATM skimming attacks that affected its customers and was reported in local media. They told the panel that the numbers were not significant and clients were reimbursed after an investigation.

The bank claims the issue will be addressed by the shift to the Europay Mastercard Visa (EMV) technology and away from old masgtripes on all its issued cards, which it will complete by the end of the year.

The Philippines central bank (BSP) has been putting pressure on all local banks to complete the EMV migration. As of April, there were still seven banks that had not completed the migration and missed the original January deadline. This was extended until the end of 2017, after which the BSP said it would consider hard sanctions.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

BPI processing snafu double-debits consumer accounts

BPI processing snafu double-debits consumer accounts

07 June 2017  |  7573 views  |  0 comments | 2 tweets | 1 linkedin
In wake of EMV switch, US e-commerce fraud soars

In wake of EMV switch, US e-commerce fraud soars

30 March 2017  |  9528 views  |  5 comments | 15 tweets | 21 linkedin
Gemalto shares in freefall as US switch to chip slows

Gemalto shares in freefall as US switch to chip slows

22 March 2017  |  4856 views  |  1 comments | 5 tweets
RBI sets timeline for India's ATMs to go EMV

RBI sets timeline for India's ATMs to go EMV

26 May 2016  |  6830 views  |  0 comments | 5 tweets | 3 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.ncr.comvisit www.aciworldwide.comvisit www.solutions.lexisnexis.com

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
14939 views comments | 24 tweets | 24 linkedin
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
12085 views comments | 15 tweets | 29 linkedin
Digital receipt startup Flux scores game-changing deal with BarclaysDigital receipt startup Flux scores game-c...
10065 views comments | 20 tweets | 36 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
9929 views comments | 13 tweets | 39 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
8269 views comments | 26 tweets | 37 linkedin

Featured job

Germany, Austria or Switzerland

Find your next job