Bank of the Philippine Islands reports unauthorized transactions due to system glitch

The fourth largest bank by assets in the Philippines on Wednesday said it encountered a system glitch that led to money being wrongly transferred in and out of accounts.

In a statement posted on the bank’s Twitter account, the Bank of the Philippine Islands said it has identified the root cause and has temporarily closed all electronic channels to resolve the issue. It did not specify the problem.

The “internal system error” led to thousands of pesos of unauthorized transactions for BPI, according to local media reports. But the bank’s president and chief executive, Cezar Consing, said the problem was not caused by hacking.

“I apologize very earnestly and very sincerely to our clients who had been adversely affected by this… This is a data processing glitch. I have to emphasize: this is not a hack at all. This is an internal issue, and so what we have to do is we had to take our systems down this morning,” he told local television ANC.

Shares of BPI dipped 1.9 percent on Wednesday morning. Singapore’s sovereign fund GIC and Philippine conglomerate Ayala Corp own stakes in BPI.