The Davao City Council passed on Tuesday a resolution urging all digital wallet issuers to strengthen their data breach security and capacity to safeguard user data following the loss of thousands of pesos by several GCash users over the weekend.
Several GCash e-wallet users howled online after losing money to what appeared to be unauthorized transactions on Saturday.
In his privileged speech, Councilor Bonz Andre Militar, chair of the Committee on Information Technology and author of the resolution, said the recent GCash incident serves as a stark reminder of the potential dangers of relying solely on digital wallet or e-wallet services.
“The risks are real and can have devastating consequences for individuals and businesses alike. While technology has brought convenience to our lives, it has also created new vulnerabilities. We must strike a balance between innovation and security, ensuring that the digital revolution benefits all citizens without compromising their financial well-being,” Militar said.
GCash immediately acknowledged through a statement via its social media accounts describing the incidents as “errors in an ongoing system reconciliation process.”
Militar stated in his resolution that these unauthorized transactions raised serious concerns about GCash’s security measures and protocols causing widespread anxiety and frustration.
“The convenience and efficiency of digital platforms, such as GCash, have undoubtedly transformed our lives. However, with the rapid advancement of technology, so too have the risks of cybercrime and data breaches. Mr. President, the sudden disappearance of funds from the accounts of numerous GCash users has caused widespread anxiety and frustration. Many individuals, including ordinary citizens and small business owners, have been left financially crippled, unable to meet their daily needs or sustain their livelihoods. This is a grave matter that demands our immediate attention and a thorough investigation,” he said.
Militar commended GCash for its swift response to the issue, however, he emphasized that a deeper investigation must be conducted into the root causes of the security breach whether it was a result of a technical glitch, a targeted cyberattack, or a combination of both.
“We must also examine the adequacy of the company’s security protocols and its capacity to safeguard user data,” he said.
He also said that all digital platforms like GCash must advocate for increased financial literacy among the public.
“Many Filipinos may not be fully aware of the risks associated with digital transactions and the importance of safeguarding their personal information. By educating our citizens, we can allow them to make informed decisions and protect themselves from cyber threats,” Militar said.
He added that the incident, while seemingly isolated, has exposed vulnerabilities in the digital wallet or e-wallet system and raised serious concerns about the security of the people’s hard-earned money.
“Mr. President, we have a duty to protect the interests of our constituents. The relevant government agencies, such as the Bangko Sentral ng Pilipinas (BSP) and the Department of Information and Communications Technology (DICT) must work to conduct a comprehensive inquiry into this incident. Our cybersecurity laws and regulations must be strengthened to ensure that digital financial platforms are equipped to handle the growing threats in the digital age,” Militar said.
