BSP Imposes Sanctions Against BDO and Unionbank on 2021 Hacking Incident

Bangko Sentral ng Pilipinas (BSP) has now officially imposed sanctions on BDO Unibank and UnionBank of the Philippines from a hacking incident that happened last December 2021. Although the central bank did not state the specific sanctions against the banks, the BSP states that they have concluded their investigations regarding the reported cases of unauthorized BDO access and fund transfers to UnionBank.

BDO has clarified that “there were no monetary penalties” involved, and the BSP’s recommendations have been implemented. UnionBank has also commented on how they were able to cooperate with BDO and the BSP for swift action on the hacking incident, with BDO recovering part of the amount lost so they could return to their affected customers.

Last December 2021, many users expressed their experiences with BDO on social media where they lost funds from their accounts. BDO remarks that a “sophisticated fraud technique” was used by these hackers, taking advantage of their web services scheduled for phase-out. The BSP states, “Based on the results of the investigation, the Monetary Board (MB) approved the imposition of sanctions on BDO and UBP to ensure that both banks will swiftly address the issues,” The BSP also recognizes BDO and UnionBank’s set of corrective actions in response to the cyber hacking incident which includes BDO’s reimbursement to their affected users.

BSP Governor Benjamin Diokno states, “This incident is a reminder that we should continue to enhance our defenses against cyberthreat actors to protect the integrity of the financial system and the interests of depositors,” The central bank also added, “The sanctions imposed emphasize the importance of continuously enhancing risk management systems involving cybersecurity, anti-money laundering, and combating terrorism and proliferation financing.”

Source: ABS CBN News