MANILA — Electronic wallet giant GCash announced on Sunday that it has resolved recent issues of missing funds and unauthorized transactions affecting some users. The company reassured customers that their accounts are secure and pledged continued vigilance in protecting users’ funds.

System Issues Resolved for Affected Users

In a statement, GCash confirmed the completion of “necessary wallet adjustments” for impacted accounts.

“Rest assured that customer accounts are safe, and customer account security will always be our top priority,” the statement emphasized.

The issue, which emerged on Saturday, was reportedly due to a system reconciliation process, according to GCash. The number of affected users was not disclosed, but the company emphasized its commitment to account security.

DICT Probes GCash Incident, Ensures Security Protocols

The Department of Information and Communications Technology (DICT) is investigating the incident to ensure it wasn’t the result of a cybersecurity breach.

DICT Undersecretary Jeffrey Ian C. Dy stated on Sunday that GCash had assured them it wasn’t a hacking incident, but the department remains committed to ensuring strong security protocols in light of growing concerns over digital transactions.

“I spoke with GCash and asked them if this was a hacking incident or a cybersecurity incident and if they need the assistance of the National Computer Emergency Response Team. They assured us that it was not, but the DICT is investigating the issue,” said Undersecretary Dy.

DICT is prepared to assist GCash with cybersecurity measures if needed, noting that e-wallets are becoming a preferred alternative to traditional banking services.

“GCash is very big right now, and if they are affected, it is a concern for the Republic. We will investigate this issue. But I think for the penalty, we should ask the Bangko Sentral ng Pilipinas, but that would depend on the results of the investigation if we found negligence on their part,” said USec Dy.

Groups Call for Transparency, Accountability, Consumer Protections to Rebuild Consumer Trust

Digital Pinoys national campaigner Ronald B. Gustilo called for additional measures to protect consumers.

“This issue has been long-running, and it seems that despite previous complaints, it has remained unresolved. This is alarming for consumers who put their trust in e-wallet providers to secure their funds. The funds lost due to unauthorized transactions should be returned immediately,” Gustilo said.

Gustilo emphasized that while returning unauthorized funds is critical, the company should also address user inconveniences and rebuild consumer trust.

The National Association of Data Protection Officers of the Philippines also voiced concerns about GCash’s transparency and accountability.

Sam Jacoba, the association’s founding president, noted the importance of GCash’s response as a “defining moment” for the company.

“GCash needs to show two things in this incident: transparency and accountability. As a leader in their industry, how GCash will handle this current issue will be one of their defining moments,” Jacoba said.

DICT: Limited Authority Over Private Fintech Firms

Assistant Secretary Renato Paraiso highlighted limitations in the DICT’s regulatory reach over private fintech companies like GCash, explaining that the department lacks the authority to audit or intervene in these firms’ internal operations. However, DICT does have the authority to check private institutions’ systems for security vulnerabilities. Paraiso further noted an uptick in fraudulent messages targeting GCash users, underscoring the importance of enhanced security in fintech operations.

“Kami ho sa pamahalaan particularly ho sa DICT eto rin ho talaga yung problema natin, na private institutions encounter these kinds of [problems]. Hindi ho natin ma-check or hindi ho kami makapasok dahil wala naman tayong regulatory powers over them,” Paraiso said.

“Ang nangyari ho sa GCash marami din hong nagsamantala na nagpapadala ho ng mga fake messages in order to get personal information ho doon sa mga clients ho ng GCash, even yung mga financial informations ho nila,” Paraiso commented.

Looking Ahead: Strengthening Security and Technology

Undersecretary Dy underscored the need for GCash to strengthen its internal security and technology infrastructure. Given that e-wallets are widely adopted as alternatives to traditional banks, it’s critical that GCash invests in safeguarding user accounts against future incidents.

“They should also invest heavily in their processes and their technology not only for security because if it is true that this is due to reconciliation of accounts, they should make sure that this does not happen again,” USec Dy said.

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