Letter to Attorney

Dear Attorney,

I hope this message finds you well. I am writing to seek legal advice regarding a distressing issue involving a credit card that I never applied for and a subsequent fraudulent transaction.

To provide context, in June 2023, a credit card from a bank (which I will not name for confidentiality) unexpectedly arrived at my residence. I had never applied for this card, nor do I hold any account with the bank in question. Believing there was no risk since I never activated the card, I kept it stored away and assumed it would eventually be deactivated due to inactivity.

However, on April 20, 2024, I received a call from an individual claiming to represent the bank. The caller ID appeared to confirm this, as it displayed the bank's name. The person on the line explained that they needed to update the card's expiration date. Despite my initial objections and my explanation that I never intended to use the card, the caller continued with persuasive statements.

Several hours after this conversation, I was shocked to receive text messages notifying me of transactions amounting to ₱100,000. These included payments to establishments I had never patronized and a request to change the contact details linked to the card.

I believe I have been the victim of a phishing scam and possible identity theft. I would appreciate your guidance on how to proceed in addressing this matter and any potential legal remedies available to me under Philippine law.

Thank you for your assistance.

Sincerely,
A Concerned Citizen

Legal Article: Understanding Credit Card Scams and Legal Remedies in the Philippines

Overview of the Situation

Credit card scams, including phishing, are increasingly common and can result in unauthorized transactions that cause significant financial distress. Under Philippine law, the victim of such fraud has recourse to legal remedies and protections, provided they take appropriate and timely action.

The described case presents two primary concerns:

Unauthorized issuance of a credit card to the complainant.
Fraudulent transactions resulting from a phishing scam.

Unauthorized Issuance of Credit Cards

The practice of issuing unsolicited credit cards may contravene provisions of the Philippine Consumer Act (Republic Act No. 7394) and Bangko Sentral ng Pilipinas (BSP) Circular No. 622.

Consumer Protection Against Unsolicited Credit Cards
- Section 52 of the Consumer Act prohibits deceptive, unfair, and unconscionable practices in financial transactions. Issuing a credit card without the consumer's request or consent may be deemed an unconscionable act.
- Consumers are not liable for charges on unsolicited cards unless they affirmatively use them.
BSP Guidelines
- BSP Circular No. 622 emphasizes responsible lending practices. Financial institutions must ensure that credit cards are issued only after proper evaluation and upon request by the applicant.

Phishing Scams and Fraudulent Transactions

Phishing scams involve deceptive tactics to trick individuals into divulging personal or financial information. In this case, the scam led to unauthorized transactions on the complainant's credit card.

Relevant Laws
- Republic Act No. 10175 (Cybercrime Prevention Act of 2012)
  - Section 4(a)(1) penalizes illegal access to accounts and systems.
  - Section 4(a)(5) addresses identity theft, applicable when scammers impersonate victims or use their credentials to make transactions.
- Revised Penal Code (RPC)
  - Acts of estafa (Article 315) may apply if fraud is used to cause financial harm.
Bank Liability
- The BSP Consumer Protection Framework holds banks accountable for implementing robust security measures. A bank may be held liable for failing to safeguard customer data or allowing unauthorized transactions without proper verification.

Steps to Address the Issue

Report the Incident
- File a formal complaint with the issuing bank.
- Notify the bank in writing about the fraudulent transactions, emphasizing that the card was unsolicited and inactive.
- Request an immediate investigation and reversal of charges.
File a Complaint with Regulatory Agencies
- Bangko Sentral ng Pilipinas (BSP): Report the unauthorized issuance of the credit card and the fraudulent transactions.
- National Privacy Commission (NPC): File a complaint for possible breaches of data privacy.
Legal Remedies
- Request for Account Suspension: The complainant can demand immediate suspension of the card and its related accounts to prevent further unauthorized transactions.
- Civil Liability for Damages: Under Article 19 of the Civil Code, individuals harmed by another's wrongful act may claim damages.
- Criminal Complaints: File a case under the Cybercrime Prevention Act for phishing and identity theft.
Documentation
- Collect all communication records with the bank and the scammers.
- Secure screenshots or printed copies of transaction alerts, call logs, and complaint filings.

Proactive Measures to Avoid Credit Card Scams

Verification Practices
- Always verify the identity of callers claiming to represent financial institutions.
- Contact the bank directly using official channels to confirm any requests or updates.
Data Security
- Avoid sharing sensitive information over phone calls, emails, or text messages, especially if unsolicited.
- Use strong, unique passwords for online accounts and enable two-factor authentication where possible.
Monitoring Accounts
- Regularly check credit reports and transaction histories for suspicious activities.

Conclusion

The complainant in this case has strong grounds to seek redress, given the bank's questionable practices and the subsequent fraudulent transactions. By promptly reporting the matter and pursuing legal remedies, the victim can protect their financial interests and hold the responsible parties accountable.

It is imperative for banks to implement stringent measures to prevent unauthorized issuance of credit cards and to educate consumers on recognizing and avoiding phishing scams. Through legal action and regulatory oversight, victims of such scams can achieve justice and compensation.