June 9, 2017

BPI Technical Glitch and the Philippines Banking Security

According to news source Rappler.com, early morning of June 7, BPI clients began reporting unauthorized transactions in their account. BPI representative said that the glitch was due to “internal data processing error”. The glitch in the system of BPI resulted to increase and decrease in the bank account balance of some BPI clients.

This is something that needs to be looked deeply by the Central Bank, as this involves financial security of the public. It is good to remember that one of the major purpose of bank is to make sure that the public money is safe.

In the past, we used to put our money under our bed, inside the cabinet, and other places that we think it’s safe. Then, banks convinced us that our money is safe with them. In the past were bank records (current balance, debit, credit, and etc) were kept manually using paper and drawers, (I’m assuming) the only security measure to be done is to keep the records lock in the cabinet, have a back-up cabinet for the records, and have a security personnel.

Now, after many decades, banks are using database and super computers to store banking records to accommodate millions of bank clients. The question now is how do we keep the records safe? Take note that most of our bank records today are stored inside a big computer, unlike in the past were you can access the bank drawers and pull out the record (only fire [burned records] and other fortuitous even will totally erase your records). Now, a small tweak in the computer code, a virus/malware attack, or a computer hardware breakdown can totally change or erase the banking records (but this is not to say that we cannot retrieve those records). The point is, banks should be prepared when negative events happen, there should be always be a back-up of banking records (may it be papers inside a cabinet).

A question before I end the write-up, how do you make a person with bank account an instant billionaire? Answer, add nine zeros to his/her account balance (000,000,000). We are now in the internet era were measurement of wealth is just a record in the computer. Hopefully, BPI computer expert personnel will find the “bug” (term for the wrong code that is causing a problem to a computer program) and hope it will not repeat again.

1 comment:

  1. Digital Money Era, money can be anything it can be a paper or a digital record or anything as long as you believe that it has value


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