“The collaboration seeks to move Filipinos toward a ‘courageous employment’ of online financial services by stripping away the fear and negative impressions created by illegal operators,” said Cybercrime Investigation and Coordinating Center (CICC)information officer Shekaina Lim.
AMID THE CONTINUED abuses of online lending applications (OLAs), the Cybercrime Investigation and Coordinating Center (CICC) has entered into a partnership with finance technology firm Copperstone Lending, Inc. to take action against abusive lenders.
CICC information officer Shekaina Lim said the initiative aims to promote a “safer lending landscape” amid the continued proliferation of OLAs that advertise “instant approval” loans while allegedly concealing high fees and engaging in psychological harassment.
“The collaboration seeks to move Filipinos toward a ‘courageous employment’ of online financial services by stripping away the fear and negative impressions created by illegal operators,” Lim said.
The partnership was formalized through a memorandum of agreement (MOA) signed Tuesday at the CICC office in Quezon City.
Under the agreement, the CICC and Copperstone will conduct public information campaigns to help consumers differentiate legitimate lenders from fraudulent operators. The two parties will also collaborate on policy development, particularly on measures aimed at curbing and regulating OLA-related cybercrimes.
TECHNICAL AND REGULATORY SUPPORT
Both institutions committed to extending technical and regulatory support to bolster enforcement efforts.
“By promoting transparency and rigorous enforcement, the CICC and Copperstone aim to ensure that financial technology remains a tool for empowerment, not a weapon for extortion,” Lim said.
From Jan. 1 to Feb. 10, the CICC’s Cybercrime Complaint Center (C3) recorded 278 complaints involving OLAs. The cases involved 75 different lending applications, but only 23 were registered with the Securities and Exchange Commission (SEC).
Approximately half of the complaints cited incidents of online harassment, including public shaming of borrowers. Other reported violations included loan scams or direct fraud cases in which no funds were disbursed, deceptive lending practices that trap borrowers in recurring debt due to undisclosed terms, and advance fee fraud requiring payment before loan release. Some platforms were reported to be operating without legal authorization.
Data from the C3 also showed that individuals aged 18 to 29 comprised the largest group of complainants, followed by those aged 30 to 39 and 40 to 49.
“This indicates that digital natives are being specifically targeted in the apps and social spaces they frequent most,” Lim said.
The public is encouraged to report online debt harassment or scams to the CICC through the Inter-Agency Response Center (I-ARC) Hotline 1326.
In January, the SEC reported the continued availability of several unregistered OLAs on the Google Play Store, including 22 applications operating without the required permits.
The continued operation of these platforms violates SEC Memorandum Circular No. 10, series of 2021, which prohibits the launch, registration and operation of new online lending platforms since it took effect in November 2021.
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