Philippines expands fraud intelligence sharing
Nine financial institutions in the Philippines launched a Fraud Intelligence Data Sharing (FIDS) Network to enable real-time fraud detection and collaborative risk management.
The FIDS network utilizes CIBI Information Inc.'s platform, enabling members to share real-time data to detect and prevent fraud. Participating institutions receive immediate alerts if an applicant's data has been flagged for suspicious activity within the shared database. This initiative complements the Anti-Financial Account Scamming Act (AFASA), enacted in 2024 to combat rising digital scams and restore public trust. AFASA mandates financial institutions to implement advanced fraud prevention measures and strengthens enforcement against cybercriminals. The Fintech Alliance.PH, with over 140 corporate members accounting for 95% of the country's digital retail financial transaction volume, is also signing an agreement with the Cybercrime Investigation and Coordinating Center (CICC) to enhance public-private cooperation. This collaboration aims to formalize cooperation between the industry and government in tackling cybercrime. CIBI's platform, which powers the FIDS network, has been implemented in Malaysia and Korea, with the Korean consortium reportedly saving $2 billion in fraud since its inception. CIBI is offering a free six-month trial for institutions joining the FIDS Network. With digital payment transactions surging in the Philippines, cyber fraud is also on the rise, making initiatives like the FIDS network crucial for maintaining digital trust. The BSP is also pushing for more secure verification methods, like biometrics, to replace one-time passwords.
