Recent alarming developments show that even formidable, long-established companies like Domestic Systemically Important Banks (DSIBs) are not exempt from hacking and data breaches. These kinds of events can cause not only tremendous financial loss and reputational damage to these organizations but is also a huge hassle for the user and consumers. In March of this year, Philippine business associations estimated that, if these attacks remained unabated, the adverse effects on the economy could reach upwards of $10.5 trillion annually by 2025. What can prove to be a strong deterrent to reducing these cybercrimes is a strong collaborative cyber defense among industry players themselves, including but not limited to government bodies, banks, fintech, industry groups, and consumer-driven communities.
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.”
In a recent public webinar organized by MB Tech News, the top news site which highlights the latest developments on technology, critical issues regarding cybersecurity and data protection were threshed out by industry experts. Cyber security advocate and Manila Bulletin’s Technology Editor Art Samaniego moderated the discussion.
Art Samaniego, The webinar’s other partners were Digital Pilipinas, a movement that seeks to address long-standing socio-economic challenges through technological adoption; and the Fintech Philippines Association, the leading independent industry association representing the interests and growth of the fintech community in the Philippines.
Digital Pilipinas’ Convenor Amor Maclang 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. “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,” she said.
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, agreed that the increasing threats posed by cyber criminals require an open environment where the industry players and their partners can discuss issues and come up with ways to solve them together. “All of us can adapt quickly and work collectively to close holes in the system that cybercriminals can exploit. We need to advocate for interoperability and collaborative partnerships in data protection,” he said.
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 emerging 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. Cryptocurrency 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 “financial institutions have a standard security measure.”
All the panelists concurred that the industry has to step up its cybersecurity efforts in order to protect itself and its customers from identity thieves and other digital invaders. The urgency of the situation was captured by Maclang’s parting words at 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 at an increasing speed. We have to admit that we can’t do it alone.”