Data Breach in the Philippines: Its Impact on Online Business

Inquiro Posted on January 29, 2024

In 2022 alone, Philippine businesses experienced over 1 million data breaches, resulting in hundreds of millions of pesos in damage, all due to the cunning maneuvers of digital fraudsters. And the issue is escalating, too. There was a 6% uptick from 2022’s average data breach cost.


These numbers aren’t just figures; they represent a dire wake-up call to the vulnerability of online businesses. These breaches highlight the multifaceted challenge online businesses in the nation face daily. There’s a growing need for robust cybersecurity measures, effective response protocols, and stringent privacy policies.


Understanding the complexities of data breaches is the first pivotal step toward safeguarding your business against these threats.

What is a Data Breach?

A data breach is when unauthorized access, disclosure, or acquisition of sensitive information compromises its confidentiality, integrity, or availability. This breach can compromise personal information or confidential data, leading to misuse, theft, or exposure to malicious entities. Such an event can jeopardize individual privacy and organizational security.


The aftermath of a data breach has a ripple effect on businesses and affected individuals. Companies potentially face financial losses, reputation damage, and legal liabilities. When a breach happens, all a victim company can do is respond swiftly and transparently to mitigate the impact and rebuild trust.

Types and Examples of Data Breaches on Online Businesses in the Philippines

Data breaches can take various forms, typically exploiting vulnerabilities and loopholes in digital infrastructure. Here are some of the most common types and data breach cases in the Philippines: 

1. Phishing schemes

Phishing schemes lure individuals into sharing personal or secured information through deceptive emails or messages, compromising their confidential data. When cybercriminals target login credentials, such leaks can lead to a ripple effect that leads to further malicious actions.


A recent phishing attack in the Philippines saw many GCash users experiencing unauthorized transactions on their accounts. The National Privacy Commission found the data breach was due to sophisticated fake gambling websites that scraped account data from its victims.

2. Online shopping scams

Online shopping scams exploit unsuspecting customers by offering fake products or services, leading to financial losses and exposure to sensitive details during transactions. More sophisticated attempts may spoof popular, trusted websites by mimicking their domain names and website formats.


Online shopping scams are such a prevalent issue in the nation that the Philippine National Police has a short guide describing them and providing tips to avoid falling victim to them.

3. Insider leaks

Insider leaks occur when employees or insiders deliberately or inadvertently expose confidential data. If an employee leaks their access credentials, the malicious actor can gain access to further sensitive information and remain undetected for much longer. There’s also some element of customer risk, but their leaks would only affect them and any connected account.


According to a survey conducted by Australian tech company Cisco in 2022, over half of data leak incidents in the Philippines were due to “accidental disclosures.”

4. Hacking and malware

Cyberattacks involving hacking and malware exploit system vulnerabilities, potentially granting unauthorized access to your company’s database. Hackers penetrate networks, compromising data integrity or planting malware that silently harvests information. Such attacks can linger, causing prolonged data exfiltration or system disruption.


Facebook, the Philippines’ most used social media platform, experienced a massive data breach that affected hundreds of millions worldwide. Nearly 900,000 Filipinos were also affected. Investigations point to hacking as the cause of the leak.

Strategies for Mitigating the Impact of Data Breaches in the Philippines

Mitigating the impact of a data breach demands proactive strategies that fortify defenses and ensure swift response mechanisms. Here are some crucial steps to take:

1. Compliance with data protection regulations

Adhering to established data protection laws and regulations is fundamental to safeguarding sensitive information. This precaution includes compliance with the Data Privacy Act and other industry-specific regulations. Complying with these standards ensures a baseline of security protocols and data handling practices.

2. Regular security audits and vulnerability assessments

Routinary security checks and vulnerability testing help identify and address potential weaknesses in systems and processes. These assessments enable preventative measures that stop the issue from occurring.

3. Encryption and access control measures

Implementing robust encryption methods and stringent access controls can add more layers to your protection. Encryption renders intercepted information unusable, while access controls limit intentional and incidental unauthorized data access.

4. Employee training and awareness programs

Educating employees about cybersecurity best practices is pivotal. Regular training sessions and awareness programs cultivate a vigilant workforce capable of recognizing and thwarting potential threats. They can reduce the likelihood of breaches caused by human error.

5. Prepared incident response and recovery plans

You can take your employee training above and beyond by developing and practicing incident response and recovery plans. Establish clear protocols outlining steps to contain breaches and mitigate damage. These plans prevent more mistakes due to panicking and inaction during a breach.

Forge Cyber Resilience

Bolstering your cyber defense in the Philippines is paramount as the nation integrates more into the online space. Many security necessities are still catching up with the pace of online operations. To succeed in online engagement, you need a deep understanding of and robust protection for data.


For your company’s data needs, partner with Inquiro. We provide comprehensive customer data solutions to ensure online success and cyber resilience. Contact us today to learn more!