Senate probe of fintech scams pushed

Senate probe of fintech scams pushed Sen. Risa Hontiveros has filed a Senate resolution seeking an official investigation of the recent spate of unauthorized transactions, scams and other irregularities involving mobile financial services.

In proposed Senate Resolution No. 1234, Hontiveros said the Senate must review existing rules and regulations governing the financial technology or fintech sector, since there was “no legislative framework yet in place to ensure stability and transparency, build public trust and promote inclusion vis-à-vis this class of services.”

The resolution cited recent incidents and issues which have affected a number of fintech users, such as the recent wave of unauthorized transactions in GCash, where money from user accounts were transferred to unknown phone numbers. GCash operator G-Xchange Inc. has attributed the transfers to errors in an “ongoing system reconciliation process.”