
Sen. Mark Villar —Photo from his office
MANILA, Philippines – As digital fraud continues to surge and online scammers refine their tactics, Sen. Mark Villar has introduced the proposed Anti-Financial Scamming Act — a groundbreaking legislative proposal designed to fortify Filipinos against a widening array of cyber threats.
The bill, which Villar says enjoys broad support in the Senate, aims to plug legal loopholes and empower authorities to act decisively against perpetrators who exploit electronic financial transactions.
Digital fraud a growing concern
Phishing, smishing, vishing, and even quishing have emerged as prevalent tactics in the scammers’ playbook.
More than 8,000 Filipinos reportedly fell victim to online fraud in the first eight months of 2023 alone, collectively losing over P155 million.
One particularly distressing incident highlighted by Senator Villar involved a cancer patient whose much-needed medical funds were drained from an e-wallet account, underscoring the life-altering damage these schemes can inflict on unsuspecting citizens.
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Why the bill?
Villar emphasized the urgency of updating the country’s legal framework to tackle modern cybercrime.
While the Anti-Money Laundering Act (AMLA) serves as a cornerstone in combating financial crimes, it chiefly addresses money laundering — leaving direct digital scamming activities insufficiently covered.
The Anti-Financial Scamming Act, he pointed out, specifically targets criminal schemes such as money muling and social engineering, making these activities clearly punishable under Philippine law.
“With the emergence of new forms of scamming like phishing, vishing, and smishing, our laws must keep up with the dynamic changes in the digital environment,” Villar said.
“We are proposing the Anti-Financial Scamming Act to ensure legislation specifically directed against scammers who utilize financial accounts.”
Stronger tools for banks, law enforcement
Under the proposed Anti-Financial Scamming Act, the Bangko Sentral ng Pilipinas (BSP) will be granted broader authority to investigate suspicious accounts without the usual constraints of bank secrecy laws.
This measure aims to expedite the process of freezing questionable transactions, safeguarding account holders from potential losses.
Additionally, the proposed legislation requires financial institutions to adopt multi-factor authentication (MFA) and advanced fraud management systems (FMS) to fortify account security for Filipino consumers.
Unified Senate stands against scammers
Several prominent senators have rallied behind Villar’s initiative, reflecting its significance in protecting Filipino consumers.
Senate President Juan Miguel Zubiri, Majority Leader Joel Villanueva, and Senators Win Gatchalian, Ramon Revilla Jr., and Jinggoy Estrada have co-sponsored the bill, underscoring the Senate’s collective resolve to eradicate online fraud.
During his sponsorship speech, Villar condemned the alarming spike in financial cybercrime, highlighting how even small sums — crucial for daily necessities — were being siphoned by scammers.
“The efforts of our countrymen to earn money for their everyday expenses are being stolen by scammers. These are heinous crimes against our people, and it is upon us to ensure that they will be put to a stop as soon as possible,” he said in a mix of Filipino and English.
What’s next?
Having successfully undergone the Senate’s period of interpellations, the Anti-Financial Scamming bill now moves into the period of amendments before heading for further legislative processes.
Once enacted, it will serve as the nation’s primary legal safeguard against online financial fraud, giving law enforcement and financial institutions the tools they need to identify and halt scammers more quickly.
“I cannot just sit and do nothing while scammers steal the hard-earned money of our kababayans,” Villar said.
“Through the Anti-Financial Scamming Act, we will have stronger safeguards and empower our financial institutions to take proactive measures against these cybercriminals.”
With support from both policymakers and financial leaders, the proposed Anti-Financial Scamming Act represents a pivotal stride towards a safer digital future for all Filipinos — one in which fraudsters can no longer prey on vulnerable individuals and families striving to secure their hard-earned savings.