P46M ‘mistakenly withdrawn’
from BPI, says executive

June 22 2017 1:00 PM

BPI

An executive of the Bank of Philippine Islands (BPI) disclosed on Thursday, June 22, that around P46 million were “mistakenly withdrawn” from the bank as a result of a recent technical glitch.

“P46 million were mistakenly withdrawn.  There were mis-posting and because of this, there was an amount that was mistakenly

withdrawn,” BPI president and chief executive officer Cezar Consing said at the hearing of the House committee on banks and financial institutions.

Consing said the amount “are with small merchants, small businesses.”

“Most of this is getting paid back. ….We are making settlements with them one by one,” he added.

The BPI executive said that the mis-posting that occurred last June 6 affected 1.5 million out of the bank’s eight million clients.

Joseph Gotuaco, BPI’s chief financial officer, said that the average mis-posting was around P7,000.

“The highest amount that was debited was P1.6 million and the highest credit was P2.5 million,” he said.

Chuchi Fonacier, assistant governor of the Bangko Sentral ng Pilipinas (BSP), said that reports and evidence that reached them indicated that there was no hacking or glitch, but a human error.

Ivy Patdu, deputy commissioner of the National Privacy Commission, said that the agency considered this a breach in the bank’s systems.

“This is breach because a breach is not limited to hacking, it can be an internal breach as such what happened.  Anything that would compromise the availability, confidentiality of personal data is breach,” she said.

“In this case, when you say a certain data processing system becomes unavailable or there are unauthorized changes, then definitely this is breach,” Patdu added.

She said the agency continued to coordinate with BPI to ensure that the bank was complying with necessary security measures to secure its system and protect its customers.

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