Identify Sumsurbers: Strategies for combating fraudulent networks in the Philippines?
In the digital age, preventing fraud has become an essential task for companies in the Philippines. With the Asia-Pacific (APAC) region showing a 2.6% growth in fraud networks over the past year, it is crucial for businesses to adopt a comprehensive approach to protect their users and assets.
The Philippines, although having a relatively low number of fraud networks, comprising just 0.3% of the country's users, should not be complacent. Fraud networks pose a greater threat to businesses compared to individual fraudsters, often organized and not by individual actors. These networks can use various tactics, including money muling and deepfakes, to infiltrate and exploit systems.
To effectively combat fraud networks, companies in the Philippines can implement a technology-driven fraud management system. This system should include real-time transaction monitoring, enhanced due diligence, collaboration with authorities, and strong customer communication.
Real-time transaction monitoring, paired with AI-powered screening, is vital for detecting suspicious activities quickly and reducing false positives. AI and machine learning platforms can analyze behavioral patterns and emerging threats to proactively prevent fraud. Scenario-based detection, such as velocity checks, pass-through account detection, and identifying burst activities typical of money mule networks, can also help in this regard.
Enhanced Due Diligence (EDD) and Customer Due Diligence (CDD) are essential components of this system. Companies should conduct thorough risk assessments of customers, particularly those with inconsistent information or high-risk profiles. This includes extra verification steps for suspicious cases and ongoing monitoring of transactions to ensure legitimacy.
Collaboration with regulators, law enforcement, and industry peers is another crucial aspect. Sharing intelligence with entities such as the Bangko Sentral ng Pilipinas (BSP), Anti-Money Laundering Council (AMLC), and other financial institutions improves detection and disruption of fraud networks that operate across multiple platforms.
Clear customer communication and education are also vital. Providing transparent purchase confirmations, refund policies, and easy access to customer support helps reduce fraud opportunities and enables customers to report suspicious activity promptly. Public awareness campaigns can also prevent unwitting participation in fraud schemes such as money mule recruitment.
Maintaining comprehensive transaction records is equally important. Detailed documentation—customer contacts, purchase history, delivery receipts, and payment authorizations—supports investigations and dispute resolution related to fraud.
Together, these measures form a robust fraud prevention framework that addresses vulnerabilities at every stage of the customer journey—from onboarding and transaction to post-sale service—helping Filipino companies minimize losses and protect customer trust while complying with legal mandates such as the Anti-Financial Account Scamming Law (AFASA).
While these practices are supported by current frameworks and technology, effective implementation depends on the company’s size, resources, and industry, and continuous updates are necessary to keep pace with evolving fraud tactics.
For more insights on fraud in APAC and ways to fight it, check the complete guide. Stay vigilant, and protect your business from fraud networks.
Companies in the Philippines can benefit from implementing a technology-driven fraud management system to proactively prevent fraud networks, which can use tactics such as money muling and deepfakes to infiltrate and exploit systems. This system should include real-time transaction monitoring, AI-powered screening, enhanced due diligence, collaboration with authorities, and strong customer communication for an effective fraud prevention framework.
