A LAWMAKER filed on Wednesday a resolution urging the House of Representatives to conduct an inquiry in aid of legislation into the alleged “unauthorized transactions” on mobile wallet service GCash last May 9, and its impact on the affected users.

“It is the duty of Congress to protect the interests and welfare of the Filipino people and ensure that digital platforms like GCash operate within the bounds of the law,” House Deputy Minority Leader Bernadette Herrera said in House Resolution (HR) No. 963.

On May 9, some GCash users experienced alleged unauthorized deductions from their accounts, causing “financial harm and inconvenience.”

GCash, a financial application operated by G-Xchange Inc., is a widely used digital wallet service in the Philippines, with over 79 million registered users relying on the platform for various financial transactions.

She disclosed that she was also one of the GCash users affected by the alleged unauthorized transactions, which prompted the provider to conduct preventive maintenance.

GCash has apologized for the temporary downtime and assured users that their funds are safe. It has also acknowledged the alleged unauthorized deductions and is investigating the matter.

However, Herrera said that the extent of the alleged unauthorized deductions in terms of the amount and the number of accounts involved has not been disclosed.

She noted that the alleged unauthorized deductions from GCash accounts were said to have been allegedly transferred to accounts under East West Banking Corp., which has initiated its own internal investigation and is cooperating with authorities and other institutions involved in the matter.

Herrera urged the appropriate House committee to invite the officials of GCash, G-Xchange Inc., Mynt, Globe Telecom Inc., the Ayala Corp., and Ant Financial to explain the nature, scope, and cause of the unauthorized deductions, as well as their plans to address the issue and prevent its recurrence.

The lawmaker also wants the House to solicit the views and recommendations of the relevant government agencies, such as the Bangko Sentral ng Pilipinas (BSP), the Department of Trade and Industry (DTI), and the National Privacy Commission (NPC), on the matter and their plans to regulate digital payment platforms to prevent similar incidents in the future.

The party-list lawmaker also underscored the need to explore legislative measures that will strengthen the safeguards and protections for GCash users and other digital payment platform users against unauthorized deductions and other forms of fraud or abuse.

“We must ensure that the rights and interests of the affected GCash users are adequately protected and that they receive appropriate compensation for any financial losses or damages incurred as a result of the unauthorized deductions,” Herrera said.

The House, she said, should request GCash and its parent company Mynt to submit regular reports to Congress on the progress of their investigation and the measures they have taken to address the issue and prevent its recurrence.

GCash is a subsidiary of Mynt (Globe Fintech Innovations Inc.), a partnership between Globe Telecom Inc., the Ayala Corp., and Ant Financial.