Key points:
- Financial crime threats escalate due to digital platforms and remittance abuse
- Investment scams and account takeover among the most reported trends
- Stricter oversight needed for high-risk sectors and cross-border transactions
The Philippine financial system is confronting rising threats from fraud and money laundering, as outlined in a recent report published by regtech firm Tookitaki and the AFC Ecosystem, in partnership with ABCOMP Philippines.
The report warns that, while digital transformation has improved financial inclusion, it has also opened the door to increasingly sophisticated criminal tactics.
The study identifies a range of pressing vulnerabilities, including illegal remittance operators, online scams, casino junket operations and the misuse of digital identification. These risks are compounded by limited regulatory oversight of high-risk sectors such as Designated Non-Financial Businesses and Professions (DNFBPs), which include casinos, brokers and law firms.
Among the most serious concerns is a surge in investment fraud, particularly those targeting Overseas Filipino Workers (OFWs). Scammers frequently exploit social media and digital platforms, promising high returns that often result in significant financial loss. Estimated losses linked to such scams exceeded PHP100bn ($1.74bn) in 2024.
Account takeover fraud is also on the rise, with criminals using phishing, credential stuffing, and access to digital ID data to infiltrate personal banking accounts. The report estimates that over 3,000 incidents were recorded in 2024, with losses reaching PHP409m.
Cross-border cash smuggling and laundering through money mule networks remain a concern, as do the risks associated with unregulated online platforms and investment-based residency schemes.
The report calls for improved cross-border cooperation, enhanced digital fraud detection, and more rigorous Know Your Customer (KYC) protocols. It also recommends greater transparency in high-risk transactions and further support for financial institutions to adopt advanced monitoring tools.
