perpetrate their criminal activities from the real world to the cyber realm. bis central bankers ’ speeches the cyber landscape indeed, cybercrimes have spawned a global industry with skilled hackers - for - hire, terrorists and syndicates that target critical institutions, infrastructure or economies. the philippines has not been spared from cybercrimes. considered the social media capital of the world, the philippines is on the radar screen of cyber criminals who try cyber attacks of varying complexities. nevertheless, industry cooperation has enabled us to stop and capture cybercriminals. for instance, authorities have arrested foreign nationals associated with cyber syndicates who were involved in atm skimming, credit card fraud, and phishing incidents. can we stop cybercrimes? well, studies indicate that cyber attacks and similar fraudulent activities against the financial services industry are likely to continue. but we can manage the risks related to cybercrimes. ladies and gentlemen. our proper response should be to broaden, deepen and escalate our own anti - cybercrime programs and activities together. the stakes are high : institutional and personal losses resulting from cybercrimes could undermine the public ’ s trust and confidence in financial institutions and ultimately our financial system. the right mindset so, what can we do to ensure industry - wide cyber security? how do we benefit from technology innovations while managing attendant risks and vulnerabilities? well, according to a seacen paper, the right mindset and a holistic multi - stakeholder approach for managing cyber security must be adopted. at the bangko sentral, we have reduced these to three major themes that form the acronym pin. as you know, pin refers to the personal identification number that must be kept secure at all times by its owners, to prevent unauthorized access to their accounts. allow me to share what pin means to the bsp in terms of fighting cybercrime : p is to be proactive, not reactive ; i is for information sharing and collaboration ; and n is a constant reminder that cybercrime is not a technical issue. i will now briefly discuss each of these themes. p is to be “ proactive, not reactive ” given a dynamic technology landscape, there is no room for complacency, one has to be proactive. while it may take years to develop a robust and effective security infrastructure, it may only take minutes or even seconds for cyber criminals to breach its defenses. and if criminals gain access to sensitive

amando m tetangco, jr : evolving cyber threats – are we prepared? speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the cybersecurity summit for the financial services industry, manila, 24 november 2015. * * * good morning everyone and welcome to this first cybersecurity summit for the financial services industry. we at the bangko sentral ng pilipinas together with our summit co - organizers bancnet and the information security officers group are pleased that you have joined us today to tackle the matter of cybercrimes. it is a fact : cybercrimes are being committed and financial institutions and financial consumers are being targeted. questions are being asked : is it widespread? can we stop cybercrimes? how can we protect financial institutions and financial consumers from cybercrimes? distinguished representatives from the financial services industry, technology partners, stakeholders in our financial sector, we need to address these issues together. digital transformation in the financial services industry in this digital age, the transformative power of technology is evident in almost all aspects of human undertakings - from modern science, education, health care, financial markets, to personal interaction. technology has likewise revolutionized banking and the manner it provides services and products. financial customers can now perform banking transactions anytime, anywhere, at their convenience. we have also seen the adoption of technology by bsp supervised financial institutions or what we call bsfis in offering innovative products and in the delivery of fast and efficient service at affordable prices. and through technology, financial institutions tap a new breed of costumers who expect top - of - the - line services, financial solutions and products with the flick of a finger. based on our records as of december 2014, around 22 million users of electronic banking services and channels were being serviced by over one hundred banks across the country. indeed, we have seen the volume and the value of transactions using e - money and ebanking channels grow steadily over the years. clearly, technology innovation has become an integral part of the business that it is now considered a “ must ” for bsfis to survive and thrive in the digital world. however, as in other fields, there is a downside that comes with innovations in technology criminal elements have likewise evolved. while it is far from widespread, cybercrimes exploit advances in technology to expand, conceal and