Credit Card Fraud

Credit card fraud is present in our country, although its prevalence is subject to debate. In the cases I’ve handled, a SINGLE fraudulent transaction amounted to millions of pesos. A newly-created task force addresses the dilemma of whether a credit card company, which oftentimes absorbs the loss, should spend more money in prosecuting a fraudulent credit card transaction without the active participation of government agencies.

he PIA reports that the President issued Executive Order No. 573, creating an Anti-Fraud Task Force composed of the National Bureau of Investigation (NBI) and the Philippine National Police (PNP) to strengthen Republic Act 8484, or the “Access Device Regulation Act of 1998?.

The occurrence of credit card fraud is increasing and acquiring banks incur huge losses and suffer stunted credit card sales, ultimately threatening the survival of the credit card industry, including the negative repercussions in the domestic economy, the President said in the order that she signed Wednesday.

She said credit card fraud was a “form of economic sabotage as it creates a bad image for the country in the global market” at a time when the government was moving to boost tourism.

The Credit Card Association of the Philippines (CCAP) earlier appealed to Malacanang to give more teeth to its laws against fraudsters using illegally obtained information from credit cards, obtained mostly through store or restaurant personnel.

Although credit card fraud is not as widespread in the Philippines as in other countries – constituting less than one percent of credit card transactions here – the CCAP said there was a need for safeguards because of the inadequate security features of most credit cards in the country.

Of course, credit card fraud is present in our country. In the cases I’ve handled, a SINGLE fraudulent transaction amounted to millions of pesos. This task force addresses the dilemma whether a credit card company, which oftentimes absorbs the loss, should spend more money in prosecuting alone – without the active participation of government agencies – a frudulent credit card transaction.

Under Republic Act No. 8484 (the “Access Device Regulation Act of 1998“), in case of loss of an access device (a credit card, for instance), the credit card holder must notify the issuer or the credit card company of the details and circumstances of such loss upon knowledge of the loss. Full compliance with this procedure would absolve the credit card holder of any financial liability from fraudulent use of the credit card from the time the loss or theft is reported to the issuer.

See also: Credit cards – How to Stay Ahead of Runaway Credit Card Debt; Credit cards and unfair collection practices; What would you do as a credit card company?


  1. nag compain na po ako kaso po wla naman sila ginagawang action din amg interest. ano po ba amg gagawin ko

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  2. Hi atty,

    ako nakareceive ako ng text ganito ang sabi:

    CIBI / Credit Investigation Bureau Inc. Your civil case compalint has been finalized under RA 386 and RA 8484. We are going to serve with our investigation team after 24 hours. You may still hold through settlement of your obligation with SUN CELLULAR ACCOUNT. NOtify us by calling / text and look for ATTY. Mendoza or any legal officers available until June 12, 2015 on or Before 3:00 PM. Otherwise just prepapre necessary document with your lawyer for your defense. Thank you!

    Is it the same ba? I know alang nakukulong sa credit card na utang pero pareho din po ba sa may telecommunications company, kasi not familiar with RA 386. Tinext ko nmn ung number na nagsend nun, tinanong ko kung sun cel mismo sila or collections agency, di n sumagot saken…is it safe to say na pwede ko i ignore ito? Thank you in advanced

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  3. Sir help nmn po..

    May Flexi loan po ako sa PSBANK which is almost 3 yrs kon dn d nababayran
    due to financial crisis, dati nmn po updaed ako magbyad. Ngayon tlg medyo
    hirap po. ThenI received a mail from a collection agent na from 40k e 110k na
    daw poa ng utang ko..Help nmn po kung pano gagwin ko Madedemanda na po ba ako ng tuluyan?

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    1. what happen to your account? I have the same situation but just for 3 months of unpaid. kinukulit ka din ba nila? on the first year?

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  4. Go to the major credit card weesitbs and look at the applications for student credit cards.I believe all CCs check credit reports, but it varies on the minimum requirements needed to get approved. Few will lend you money without checking if you are trustworthy.Your first CC will likely be a low-limit, high-interest one, so your credit-building task might be a slow one. Ask at your bank about getting one through them. Remember, if you get a CC, try not to carry a balance on it and DON’T BUY IT IF YOU CAN’T AFFORD IT. CCs are magic-money-cards, they are meant to make money for the CC companaies.

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  5. hi po ask ko lang po kasi yung asawa ko naging co borrower ng kakilala nya. ung umutang na iyon pmnta n s ibng bansa at hindi n pla bnbyran ang utang niya sa lending company n worth 35k at lumobo n nga daw pp sa 68k ngayon dhil nung 2009 pa yun. kinukuliy ng collector ang asawa ko tumigil n cla ngayon naniningil nnmn cla at s bgong pinagtatrabahuhan nmn ng asawa ko cla ng pdla ng letter. bench warrant of arrest n at BP BLG22 n d po b bouncing cheque un? eh wla nmn pinipirmahn ang asawa ko n kht anong cheque. pro ung taong humiram ay meron daw syang pinirmahan n cheque n inissue ng lending company. mkakasuhan po b ang asawa ko dun dhil my bench warrant of arrest n nga po sya

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  6. hi
    my mother received a summon, I know that it means the bank already filed a case we don’t have a way to pay for a atty. my mother is already a senior citizen and does not have work. may I ask is there a possibility that they can have our house so my mother can pay her debt.

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  7. good day po..meron po akong loan sa ps bank, di ko po malala kung nag issue ako ng tseke eh..matagal na po yun way bk 2002, d na po ako nakabayad dahil sa mga problemang nakaharap at hirap sa buhay..may tumwag sa akin na collection agency at 2m na daw po inabot ng utang ko ng 100k lng..pinag babayad ako kaagad ng 50k within 3 days, saan namn po ako kukuha ng perang ganun kalaki.pumunta pa sila sa opisina para manakot.ipapakulong daw nila ako..anu po ba ang pwede kong gawin,,pls help me naman po..thank you

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    1. sana po sagutin nyo ang aking hinaing dito..di ko po kasi alam ang gagawin ko..kakasimula ko lng sa trabahao at baka matanggal pa ako dahil doon.

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      1. leonora, huwag kang mauunahan ng takot, trabaho ng nangongolekta yan at hinding hindi ka rin matatanggal sa trabaho dahil sa utang.

        Try to recall kung nag-issue ka ng check at kung may mga natanggap kang demand letter mula sa PS Bank. Kung 2002 pa yung utang mo, at nag issue ka ng check, prescriptive period for filing a complaint for violation of BP 22 is four (4) years from the day of the commission of the violation of the law, or if not known at that time, from the discovery thereof.

        Relax ka lang, tinatakot ka lang ng collection agency

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  8. Thanks Juan..Pero may chance po ba na yung collection agency eh mag file ng complaint for violation of BP 22 ulit this year? sa tanda ko po nag issue ako ng check na bigay din bangko way back 2002.. pasensha na sa follow up question ko. Salamat ng marami

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  9. Good day Attorney!

    I have problem wherein naka register ako s online app where i can go online shopping and online din pag babayad and pwede installments. Name ng app is Akulaku. Now logging in sa app is only thru registered mobile number and pw. I have credit limit din sa app. Hindi ko na siya na gagamit pero active pa din. One of my work mate borrowed my access sa app and asked na gagamitin niya for shopping. Transactions been made and ako pa nag receive ng items. Until I received calls from the app admins saying na fraudulent activity daw at pinahold yung mga items. 1 item was delivered before sa pag contact nila, and 2 items same day na na contact nila ako. Was able to return the last two items kasi nga pinabalik nila regarding the issue kasi pinahold na daw ni cc company. Now my office mate said na nakuha niya online si credit card and hindi naman niya alam ang name basta details lang. At yun ginamit niya pag order online using my details t na receive ko nga mga items at isa lang hindi nasauli. What will happen to me? May habol ba credit card company sakin since sakin ang details. Or si akulaku maghahabol sakin to pay the item? Can they force me to pay item full price or installments. Will the credit card company can sue me for fraud?

    Thanks po attorney.

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  10. Hi po,

    Ask ko lng po if ganito pa dn ung batas for credit card debt as of 2017, kasi ung Saulog abnd De Leon Law office is ginugulo ako, dito pa sa office nagpupunta..

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