Did you know that more than 72% of Filipinos were targeted for fraud in 2025? Out of those, 11% fell victim to such scams. Because of it, the country’s suspected digital fraud rate stood at 4.1% last year, which exceeds the global level of 3.8% for six consecutive years. Furthermore, there is an average loss of P50,028 to fraud for those who fell victim, mainly because of money mule activity, such as romance scams or fake job postings, and third-party seller scams.
Some Filipinos also fall victim to online loan scams. According to a recent Securities and Exchange Commission (SEC) advisory, these schemes involve unverified individuals who would impersonate legitimate financing or lending companies. Their modus operandi involves asking victims to pay advance charges before having their loan processed. In some cases, borrowers are later harassed or threatened.
Laws Against Online Fraud or Scam
While agencies repeatedly remind consumers to be more vigilant when transacting online, some still fall prey to these scams. So if you or a loved one got roped into these scams, there are laws in place to help victims of online fraud, and their applicability depends on the circumstances of the case. Depending on the circumstances, several Philippine laws may apply to online fraud. One of the primary statutes is Republic Act No. 10175, or the Cybercrime Prevention Act of 2012, which penalizes cyber-related offenses such as computer-related fraud, identity theft, and other crimes committed through information and communications technologies.
When it comes to financial platforms like online banks or electronic money issuers (EMIs), the law also sets out their responsibilities to victims of online fraud. The Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act defines the role of the Bangko Sentral ng Pilipinas (BSP) as the second level of recourse for aggrieved consumers of BSP-Supervised Financial Institutions (BSFI), including popular platforms like GCash and Maya, through the BSP-Consumer Assistance Mechanism (CAM).
Furthermore, the Republic Act No. 12010, or the Anti-Financial Account Scamming Act (AFASA), was recently enacted to (1) prevent, detect, and delay fraudulent transactions, (2) enhance the ability of fraud victims and financial institutions, to trace, hold, verify, and recover disputed funds, and (3) provide an expedited procedure for accessing and sharing financial account information for law enforcement purposes.
Aside from punishing fraudulent transactions, AFASA also provides the roles and responsibilities of financial institutions during a disputed transaction, including:
- Responsibility to protect access to the client’s financial accounts by adequate risk management systems and controls.
- to hold funds subject of a disputed transaction for 30 days, unless extended by a court.
- Coordinate with the account owners when there is a disputed transaction, regardless of whether the funds remain in the banking system or not.
- Liability for failure to temporarily hold funds subject of a disputed transaction or improper holding of funds.
Online banks and EMIs have been integrated into our society for so long now that almost all transactions can be done virtually. Because of this, the law has also evolved to protect the rights of consumers and punish acts that take advantage of the virtual nature of these transactions and commit fraud.
As digital payments continue to become part of everyday life, consumers should understand that they are not without legal protection when they become victims of fraud. Philippine law imposes responsibilities not only on fraudsters but also on financial institutions to implement safeguards, investigate disputed transactions, and cooperate in the recovery of funds where appropriate. Knowing these rights can help victims respond promptly and pursue the remedies available under the law. For those affected by online scams, consulting a lawyer can help determine the most appropriate legal and administrative remedies based on the circumstances of the case.