Group asks: Who’s protecting e-wallet subscribers from glitches?
WHO is responsible for holding digital wallet providers accountable when system glitches occur or when they fail to protect consumers’ hard-earned money?
This question is being raised by CLICK Partylist’s First Nominee and digital lawyer, Atty. Nick Conti, after the Department of Information and Communications Technology (DICT) admitted it currently lacks the authority to monitor or investigate fintech firms when issues arise that impact many Filipinos.
Over the weekend, users of the digital wallet GCash reported unauthorized transactions. Among those affected was celebrity comedienne Pokwang.
GCash, operated by G-Xchange Inc., later clarified that corrections were made to prevent a recurrence of the inadvertent debits, which had affected several users due to errors in its system reconciliation process. Globe Telecom Inc. President and CEO Ernest Cu stated that no unauthorized fund losses occurred, despite several users reporting transactions involving funds allegedly claimed by unknown parties.
As a digital technology advocate, CLICK Partylist is urging the passage of the proposed Cybersecurity Act, which would create a National Cybersecurity Council. This council would be responsible for “enhancing public-private partnerships in information sharing related to cyberattacks, threats, and vulnerabilities.” A Senate version of the bill has been pending at the Senate Science and Technology Committee since 2022.
Atty. Conti emphasized the need for the government to have the authority to investigate private institutions in cases of cybersecurity concerns.
“E-wallets like GCash have become essential for millions of Filipinos, providing convenience and expanding access to financial services,” Conti said. “However, that convenience must come with a guarantee of safety, especially for users who entrust these platforms with their hard-earned money. Recent incidents highlight the need for stronger security measures and safeguards.”
One of the laws CLICK intends to promote focuses on protecting Filipinos in their digital wallet transactions. A critical component of this proposal is establishing a Digital Wallet Ombudsman within the DICT. This dedicated office would address complaints, oversee investigations into security incidents, and enforce penalties on platforms found negligent in safeguarding user data and funds.
“We need an advocate for consumer rights in the digital economy, someone to hold e-wallet providers accountable and ensure they meet the standards expected of them,” Conti asserted.
He added that stricter security protocols are essential for e-wallets. CLICK envisions mandatory security features, such as multi-factor authentication (MFA) and end-to-end encryption, alongside real-time AI-based fraud detection systems that can identify and stop suspicious transactions before they lead to financial losses. This would provide an added layer of protection for users and enhance trust in digital financial services.
Additionally, Atty. Conti said CLICK is promoting a proactive education program to help users recognize and avoid potential security threats.
CLICK’s proposals also include financial protections, with the party advocating for mandatory insurance coverage for e-wallet funds to protect users against unexpected losses. Unlike banks, which insure deposits through agencies like the PDIC, e-wallets currently lack this safeguard, leaving users vulnerable to financial loss due to security breaches.
