LandBank denies system hack, says teachers lost funds due to ‘isolated’ phishing schemes

The Land Bank of the Philippines (LandBank) on Monday denied that its systems were hacked, as it clarified that the supposed unauthorized transactions by two teachers were due to phishing schemes.

LandBank, in an emailed statement, said that accounts and personal information remain safe, and that it is in contact with the affected customers to resolve the issues.

“According to the initial investigation by LandBank, the devices of the teachers were hacked via phishing which compromised their personal information,” the state-led lender said.

“The bank has already reached out to the affected customers and is working on the resolution of these isolated cases at the soonest possible time,” it added.

LandBank is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds.

Phishing involves the fraudulent practice of sending emails claiming to be from reputable companies to gain access to personal information of individuals, such as passwords and credit card numbers.

Data from the Credit Card Association of the Philippines (CCAP) shows that fraudulent credit card activities through remote and other digital payment channels surged by 21% in the country since the COVID-19 pandemic started.

The LandBank statement was released after the Teachers’ Dignity Coalition said it received a number of reports claiming that teachers lost as much as P121,000 each from their LandBank accounts, which they reported to the bank.

“LandBank reminds its customers to refrain from opening suspicious emails, links and attachments, and sharing your account and personal information. Official LandBank representatives will never ask for the crucial financial information of customers,” it said.

LandBank has since urged customers to report any issues to their respective handling branch, through its customer care hotline, or via email.

In a statement, the Department of Education said that while it has not yet received any formal incident reports on the matter, it is currently working to validate the claims through its field offices. 

"Landbank has already reached out to DepEd and assured that cases on unauthorized withdrawals are properly handled and given utmost attention," DepEd said.

"DepEd enjoins all of its personnel to immediately inform their respective Divisions, and report any issues to their nearest Landbank branch."

In a separate statement, Senator Sherwin Gatchalian called on LandBank and the e-wallet operator GCash to cooperate and work closely with authorities to identify and apprehend the criminals.

“[W]hat’s even more disturbing in this latest hacking report is the fact that those victimized are holders of accounts in a government financial institution,” Gatchalian said.

“I urge the Landbank and GCash to undertake remedial measures the soonest time possible, including the reimbursement of the money lost by the affected clients,” he added.

Gatchalian said that the Senate was working to approve the proposed Internet Transactions Act and Financial Products and Services Consumer Protection Act before Congress’ adjournment.

These acts would establish more robust consumer-centric policies and standards and empower regulators to take necessary actions. —AOL/BM, GMA News