Fraud is evolving—and so are the ways it impacts people, businesses, and financial institutions in the Philippines. As digital payments grow and financial services become more accessible, fraudsters are also getting smarter.
This 2025 guide breaks down the most common types of fraud in the Philippines today, how they work, and what you can do to stay one step ahead.
Why Fraud Is on the Rise in the Philippines
The Philippines has seen a rapid shift to digital banking and mobile transactions. This brings convenience—but also opens the door for more fraud.
According to Bangko Sentral ng Pilipinas (BSP) and insights from the AFC Ecosystem, fraud-related crimes have increased sharply over the past two years. New schemes now target consumers, financial institutions, and even government services.
Understanding the common types of fraud is the first step to prevention.
1. Account Takeover (ATO) Fraud
What it is:
Criminals gain unauthorised access to someone’s bank or e-wallet account—often by stealing login credentials.
How it works:
-
Phishing emails or fake SMS trick users into entering personal info.
-
Fraudsters use stolen data to log into accounts and transfer money out.
-
Many victims are unaware until their funds are gone.
Real-World Impact:
In 2024 alone, PHP 409 million was lost due to ATO-related fraud in the Philippines.
How to protect yourself:
-
Use multi-factor authentication (MFA)
-
Avoid clicking suspicious links
-
Monitor account activity regularly
2. Romance Scams
What it is:
Scammers pretend to build a romantic relationship with victims online to trick them into sending money.
How it works:
-
Fraudsters create fake dating profiles or impersonate someone.
-
They gain the victim’s trust and invent stories (medical emergencies, travel funds).
-
Victims send money, often over long periods, without realising it’s a scam.
Target victims:
OFWs, retirees, and emotionally vulnerable individuals.
3. Investment Scams
What it is:
Fraudulent schemes that promise high returns with little or no risk.
How it works:
-
Victims are lured via social media or WhatsApp groups.
-
Schemes often include Ponzi or pyramid models.
-
“Recruit to earn more” is a red flag.
Losses in 2024:
Estimated at PHP 100+ billion, especially among OFWs and working professionals.
4. Casino Junket & Betting Fraud
What it is:
Criminals use casino junket operations to launder money or hide illicit transfers.
How it works:
-
Illicit funds are converted to chips, gambled briefly, then cashed out.
-
Junkets often involve cross-border transactions with minimal oversight.
Why it matters:
These operations are hard to trace and often linked to organised crime.
5. E-Commerce & Delivery Scams
What it is:
Fake online stores or sellers trick buyers into paying for products that never arrive.
Tactics used:
-
Fake Facebook/Instagram shops
-
False payment links or e-wallet QR codes
-
Impersonating logistics companies for “additional delivery fees”
6. Money Mule Schemes
What it is:
Fraudsters convince people to move money for them—often unknowingly—by using their bank or e-wallet accounts.
How it works:
-
Victims are recruited via job ads or messages.
-
They're asked to receive or transfer money as part of “admin” work.
-
These accounts are used to launder proceeds from other crimes.
Did you know?
As many as 5% of Filipinos may be unknowingly involved in money mule operations.
7. Phishing & Smishing
What it is:
Attempts to steal personal information via fake emails (phishing) or SMS (smishing).
How it works:
-
Messages look like they're from legitimate banks or government agencies.
-
Victims are asked to “verify” accounts or enter OTPs.
-
Stolen data is used for fraud or identity theft.
How You Can Stay Protected
Fraud isn’t just a bank’s problem—it’s everyone’s responsibility. Here’s what you can do:
✅ Never share your OTP or password with anyone
✅ Don’t click on suspicious links in messages or emails
✅ Use apps from official sources only (Google Play / App Store)
✅ Monitor your accounts frequently
✅ Report suspicious activity to your bank immediately
What Financial Institutions Need to Know
The changing nature of fraud calls for smarter systems. Traditional rule-based systems can miss the bigger picture—especially when criminals use cross-border layering, digital wallets, and shell accounts.
Here’s what modern AML and fraud prevention requires:
-
AI-powered transaction monitoring
-
Real-time detection and scenario simulation
-
Cross-institutional collaboration and shared scenarios
How Tookitaki Helps
At Tookitaki, we help financial institutions in the Philippines fight back with smart, adaptive fraud detection tools.
Our AI-powered platform, FinCense, gives compliance teams access to:
-
The latest fraud scenarios from the AFC Ecosystem
-
Smart simulation mode to test and deploy new scenarios faster
-
Real-time monitoring with reduced false positives
Whether it’s romance scams, money mule networks, or account takeovers—Tookitaki helps you respond faster, smarter, and at scale.
Final Thoughts
Fraud in the Philippines isn’t just growing—it’s transforming. From emotional scams to sophisticated laundering schemes, the landscape is becoming harder to navigate.
Education, awareness, and the right technology stack are your best tools.
📌 Stay vigilant.
📌 Report suspicious activity.
📌 Work with the best fraud prevention companies in the market to stay ahead.
Content that might peak your interest
