BDO appeals for patience as it probes fraud claims


Posted at Jan 11 2018 06:03 PM

MANILA - BDO Unibank said Thursday it would refund clients who were proven to have fallen victim to unauthorized withdrawals and purchases as it appealed for patience from those who reported fraudulent transactions.

In a statement, BDO president and CEO Nestor Tan said fraud investigations take time. 

"It is a laborious process of tracing individual transactions and validating any irregularities and indications that there could have been fraud. Some of these parties in this process have to go through millions of transactions for verification. This is why it can take time for us to provide resolution to a customer's case," said Tan.

Fraud investigation involves five parties: the customer, the bank, the third party payment system, the bank or third party payment processor of the merchant, and the merchant itself, BDO said.

The bank also said it separates cases of fraud perpetrated by unscrupulous individuals or groups from what it deems as "familiar fraud." 

"In our experience, about one-third of fraud cases are classified as 'legitimate fraud,' where the customer is truly a victim through no fault of their own because of crime syndicates. Customers are immediately compensated in such scenarios," said BDO president and CEO Nestor Tan. 

"Unfortunately, some cases are classified as 'familiar fraud,' wherein friends or a family member uses a client's account without the client's knowledge," he said. 

Tan reminded clients to never share their PIN with anybody else, and to regularly change this for security purposes.

On Tuesday, BDO said it noted an "extraordinary rise" in the number of fraud cases during the last three months of 2017.