cyberattack

A LAWMAKER here lobbied for the creation of a centralized data center for all departments, offices, attached agencies, and instrumentalities of the city government to safeguard digital information.

Councilor Bonz Andre Militar introduced the ordinance recognizing the lack of a central system and the inefficiency of the fragmented setup in the government processes.

“As we move further into the digital age, our city government relies more than ever on digital systems to serve the public, manage records, and run our daily operations,” Militar said in his privileged speech during the regular session on Tuesday, Feb. 3.

The committee chair on information technology emphasized that the city’s data is disjointed as departments and offices maintain their own separate servers, databases, and information systems.

Militar noted the fragmented setup is “not just inefficient, it is risky,” leading to security vulnerabilities, wasted resources, and emergency risks.

He added that there is a higher risk of data breaches, system crashes, and even losing important government records.

The councilor also highlighted the duplication of ICT resources and a lack of coordination between offices.

Without central control, he said, the ability to keep essential public services running during natural disasters or cyberattacks is “seriously weakened.”

“The lack of clear rules, while we have some digital policies, we lack a specific, enforceable law that tells us exactly how our data should be protected and who is responsible for it,” he stressed.

The proposed ordinance will establish a centralized center to host and safeguard the digital systems of all city offices, including provisions on rules on data ownership, access, sharing, classification, retention, and disposal among city offices.

The measure ensures strict compliance with the Data Privacy Act of 2012 to protect information and will align with existing Davao City ICT and e-Governance ordinances.

“It will also prepare us for disaster as it will require clear plans for backups and disaster recovery so our services do not stop when things go wrong,” Militar said.

Militar added that the ordinance will improve accountability by giving the City Information Technology Center (CITC) and other responsible offices the authority to manage, supervise, audit, and enforce high standards across the board.

Noncompliance by responsible officials or offices will result in administrative penalties.

“Our goal is simple: to manage government data as a strategic public asset, which is in line with the city government’s long-term plan of a transparent, secure, and future-ready government,” the councilor stated.

PHILIPPINE financial institutions face a growing threat. In 2024, cyberattacks cost the industry a staggering P5.82 billion, a significant jump from the year before, according to the Bangko Sentral ng Pilipinas (BSP). This increase highlights how quickly fraud tactics evolve and the need for stronger collaboration among institutions.

From identity theft to deepfakes, fraud is evolving fast, leaving businesses struggling to keep up. A fragmented, siloed system creates critical blind spots: when a scammer is flagged at one bank, the lack of shared information allows them to continue their schemes at other institutions, undetected.

“Fraud is no longer a challenge we can face in silos,” said Edith Roberto, CIBI’s head of individual credit solutions and partnerships. “We must shift to a proactive, collaborative approach through data sharing to prevent scammers from exploiting the gaps in a fragmented system.”

Data sharing is the key to effectively combat fraud because it moves beyond an individual institution’s limited view to a collective, interconnected defense. When multiple organizations pool their information, they create a much larger database, enabling stronger protection against fraud.

This approach has two major benefits. First, it enhances fraud detection. When institutions share data on suspicious activity, they gain real-time insights into new fraud tactics. Second, it leads to a faster response and higher recovery rates. In a siloed system, by the time a fraudulent transaction is flagged, the stolen funds are already gone. A data-sharing platform, however, enables institutions to

communicate in real-time, allowing them to act before the scam progresses.

“Fraud prevention strategies have to change from reaction to prevention,” said Pia Arellano, CIBI president and CEO. “Fraud will continue to evolve, but our defense must evolve faster. It’s up to us to adopt measures that protect the integrity of our businesses before they are compromised.”

CIBI Fraud Bureau is a practical step toward a collective defense against fraud in the Philippines. It operates on a model where fraud is a common enemy, and the most effective way to fight it is by sharing data.

This bureau creates a system where players from traditional banking, fintech, and other industries like telco contribute to a shared database of confirmed and suspicious fraudsters. In effect, when the players receive an application, they can run it through the bureau and be alerted if the individual has been flagged as a scammer by other institutions.

Based on data reciprocity, players must share data to gain access to data in return. This ensures the database is always growing, creating a wider and more effective shield against fraudulent activities. All data sharing is done with strict adherence to data privacy regulations, ensuring security and compliance.

The goal is to be able to achieve greater collaboration with more players, including the public sector.

Ultimately, this fraud bureau supports the BSP’s mission to curb fraudulent activity by providing a

concrete solution that helps businesses protect themselves and their customers.

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Creation of a centralized data center for city government offices pushed

How data sharing strengthens fraud defense in the Philippines