The Credit Card Association of the Philippines, an organization of 17 major credit card companies, said Monday it expects the new law mandating the registration of subscriber identity module or SIM cards to help curb credit card fraud and expedite digitalization in the country.
CCAP chairman Rolando Ebreo said during CCAP’s 42nd anniversary Republic Act No. 11934 or the SIM Registration Act is “a major step in removing the impediments towards digitalization, of pinpointing where the problem really lies.”
“We fully supported the ideals of the SIM Registration Act and that despite its disapproval in December 2021, we have continued to follow through on the interim measures we can implement through the telecommunications companies and through the National Telecommunications Commission,” Ebreo said.
“With the SIM registration law, we are set, as a nation, to combat that malice and to once again add a layer of protection for our Filipino consumers. It will help mitigate, if not prevent, scam messages that contain links used to lure the victims into giving out their information. It is a realization of our desire to institutionalize measures that protect our customers,” Ebreo said.
President Ferdinand Marcos Jr. signed into law RA 11934 on Oct. 10, 2022.
He said this would provide law enforcement agencies the tools needed to resolve crimes perpetrated with the use of SIM cards.
CCAP has been pushing players in the telecommunications sector, regulators and lawmakers to adopt stricter measures and enact laws against SIM-related fraudulent activities.
It noted a 21-percent increase in fraudulent credit card activities since the start of the pandemic in March 2020 as consumers shifted to various digital payment platforms due to mobility restrictions.
CCAP executive director Alex Ilagan said these challenges prompted CCAP to launch its #FightBudolMovement to raise consumer awareness on emerging modus operandi and fighting credit card fraud.
CCAP data showed that credit card fraud complaints grew 9 percent in the first half from a year ago, and 40 percent and 32 percent from the same period in 2019 and 2020, respectively.
The organization also continues to work with various government entities to promote consumer welfare through initiatives that focus on the responsible use of credit cards and consumer protection from smishing attacks and other credit card-related fraud.
CCAP members, along with the Bangko Sentral ng Pilipinas, also continue to help alleviate credit card debt by helping debtors pay off outstanding payments through the Interbank Debt Relief Program.
CCAP president Magdalena Surtida said that while the law on SIM registration was finally enacted, the group should continue to evolve by collaborating with more government agencies to promote consumer rights and protection.
She said CCAP would expand its reach to other payment landscapes and conduct more credit education webinars in schools and companies.
“We want to work with card schemes closely to innovate our credit card products to be more tech-savvy and to reach a more relevant target market. Exciting times are ahead and there is more meaningful work for us,” Surtida said.
