Nakikita nating lahat ang rise of the digital banking industry in our country, most especially during the pandemic. In one way or another, halos lahat tayo gumamit ng some form of digital banking service – para mag bayad ng bills, magtransfer ng pera, o magshop online. Maraming advantages ang digital banking, pero marami ring questions regarding sa safety at security nito. Hindi naman natin 'to maaalis as a consumer, pero ano nga ba talaga ang score? Secure ba or unsure ang digital banking?

Pero, bago ang lahat, i-define muna natin…

What is a digital bank? 
 

Digital banks are a type of bank na nag-ooffer ng financial products at services similar to traditional banks with one key difference: Lahat ng proseso, from end to end, is done through a mobile app. Meaning hindi mo kailangan ng physical presence para gamitin ang mga services niya because everything is done digitally – applications, payments, padala, credit, bills payments, etc.

Dahil sa automation at elimination of physical branches, digital banks have lower operational costs compared sa mga traditional banks. This is the reason why kaya nila mag-offer ng better interest rates and superior returns on deposits compared to traditional banks. For deposits, interest rates can be up to 10x higher and sa savings, up to 2.5% or more compared to the 0.25% of traditional banks. Oh diba? Convenient na nga, mas kumikita pa! 
 

Pero, safe ba gamitin ang digital banks?
 

Yes, safe na safe ang mga digital banks, basta regulated at licensed ito nag tamang authorities. In our country, ang Bangko Sentral ng Pilipinas (BSP) ang nag-iissue ng license at nag-uuphold ng standards for the protection of its customers.

One of the most important safety factors sa isang bank ay deposit insurance. Lahat ng licensed digital bank ay meron nito. Actually, part ng requirements para makakuha ng operational license sa BSP ay ang pagiging Philippine Deposit Insurance Corporation (PDIC) insured. Meaning, covered ang money natin for up to P 500,000.00 and this is per account holder per bank. So, kung ano mang mangyari sa accounts natin, PDIC ang responsible para magbayad up to P 500,000.00.

In conclusion, safe ang gumamit ng digital banks basta licensed ng BSP. Read about the full guidelines here.
 

So…ano yung mga security measures na ginagamit ng digital banks?
 

Being 100% digital, nag-iinvest ang digital banks heavily sa cybersecurity. In this section, iisa-isahin natin yung mga standard security measures na dapat niyong hanapin sa isang digital bank. Kung wala nito ung chosen digital bank ninyo, may possibility na hindi siya safe gamitin.
 

• End-to-end Encryption at Firewall Protection. It protects sensitive information from being accessed by third parties. Isa na dito ung mga personal data ninyo. This is really a need-to-have para sa digital banks, so that ensured lahat ng customers na walang data breach na mangyayari pag nag-open ka ng account with them.

• Blockchain Technology: If your digital bank is backed by blockchain technology, sure na sure ka na may high level ng cybersecurity ito. One of the basic uses ng blockchain sa digital banking is yung ability nitong gawing challenging ung pag-steal ng information ng third parties by brute force. In a way, yung immutability feature ng blockchain reduces fraud attacks and enables transparency sa banks in all transactions made. Paano? Dahil sa distributed ledger and consensus mechanism na nag-eensure ng data consistency across the network.

• Multi-factor authentication (MFA): Very critical ito para sa mga digital banks because it requires users to input their temporary access or i-approve yung push notification as an additional login information. MFA is one of the ways para ma-prevent yung single point of failure when it comes to your account security. If someone gets a hold of your password, hindi nila kayang ma-access yung funds mo because of the MFA required.

• Automatic Log-out: Napaka-simple pero considered a very important standard feature for cybersecurity. Simply put, it makes it challenging for other people to access your account even if they have your smartphone.

• Biometric Authentication: This is available on most modern devices today and isa 'to sa mga technology na nagbigay ng malaking impact sa security, lalo na para sa digital banks. Meaning, pag nakuha ng isang malicious attacker yung smartphone mo, hindi niya kayang ma-access ang account mo because of this kind of authentication. Better to have this authentication enabled sa digital bank apps mo if available.

OK. Pero para sure na sure, here are some things you can do to keep your account extra safe.

Ang number one threat pagdating sa cybersecurity, according to IBM Threat Intelligence Report 2022, ay ang Phishing. Phishing is an act of fraud where a malicious attacker impersonates a company or institution para lokohin ang users to give their sensitive information like passwords, card o account number.

Mga ways na ginagamit ng fraudsters para manloko:

• Email - Usually, ginagamit ang email as a mode of sending these phishing messages, using a fake email. Then, nilalagyan nila ng fake company logo and header, asking for your information.
• Telephone/Voicemail - Possible din na manloko sila using a telephone or voicemail - ang tawag dito ay Voice Phishing o Vishing.
• SMS - For sure you’re one of the many people na nakakatanggap ng ganito. Important na maging aware sa mga text messages meant to fool you.
• Social media - Given na there are a lot of people in social media now, hindi magpapahuli ang mga fraudsters in using this platform in fooling people.

Best practices to remember para ma-avoid natin ang phishing attacks:

• Be alert and i-report ang mga suspicious emails, calls o messages to your bank.
• Always check the websites you use sa digital bank mo. Make sure na verified ang URLs and portals.
• Never submit sensitive information sa mga hindi secured na websites.
• Don’t click pop-ups at 'wag magdownload at install ng hindi verified na software.
• Don’t click links or respond sa mga messages received from unknown numbers or accounts sa social media.
• Sometimes there are messages from your friends or family na hindi mo alam, phishing attack na pala! Kaya don’t trust easily, especially yung mga suspicious messages na nagtatanong ng sensitive information, more so, pag money.
• Don’t trust easily, especially pag naka-receive ka ng messages or calls from a person na nagsasabi na they’re a representative of your digital bank or any financial institution. Remember, important i-verify muna ang lahat bago i-entertain ang mga ganito.
• Keep this mind: Your digital bank (or maski ano pang bank) won’t ask for any sensitive information from you, EVER!
• I-make sure mo na all of your security features like MFA, biometric authentication, and automatic logout, ay enabled para alam mong safe and protected ka from phishing attacks. 
   

No doubt, top concern talaga ang security for all avid banking customers - digital bank or not. But, thanks to all the technological advancements and security mechanisms available, sure na tayo na safe ang ating data na binibigay sa bank! Most importantly, we need to do our part din para extra safe pa lalo ang ating accounts. 
 

Hopefully, now you are less unsure and more confident that with digital banks, your money is safe and secure!