BSP official: GCash investigation completed by mid-December

THE Bangko Sentral ng Pilipinas (BSP) plans to complete its investigation into a reported system failure that led to unauthorized deductions for GCash users next month, Deputy Governor Mamerto Tangonan said Wednesday.

The investigation, which was launched after users of the country’s largest e-wallet complained earlier this month that their accounts had been drained, will be completed in 15 days or by mid-December, he added.

GCash operator G-Xchange Inc. (GXI) said there was a systemic issue behind the unauthorized transactions, and that the affected customers would be refunded.

The BSP ordered GXI to expedite refunds and provide regular updates. The company also said it would “further investigate the incident to identify potential vulnerabilities and verify compliance with regulations and policies.”

Tangonan said determining the root cause of an incident is critical because it can help identify potential policy gaps.

“Payments are built on trust,” he said. “If people don’t trust the system, they won’t use it, which undermines the benefits of digital payments.”

Tangonan noted that GCash has taken steps to address the issue. “I think they also reported that they were whole, that is, they got back everything that was lost,” he added.

The BSP said fraudulent transfers accounted for only 0.002 percent of total digital transactions last year.

Despite the low number of cases, Tangonan said the central bank remains committed to ensuring the safety and reliability of payment platforms.

Additional regulations may not be necessary, he added, because existing policies only need to be strengthened.

“Sometimes the policy is already in place; it just needs better monitoring and enforcement.”

He also said that any gaps identified during the investigation would be discussed directly with GXI senior management.

“Well, it’s hypothetical. Of course, if there’s a violation, a non-compliance … that’s (imposing sanctions) the course of action,” Tangonan said.