APAC Bank Fraud Risks Rise with Scams and Mule Accounts, FICO Reports

Scams and money mule accounts have overtaken traditional fraud as the primary threat to banks in Asia-Pacific, according to a FICO survey of over 40 fraud and risk executives conducted in June. Around 69% identified scams as the industry’s top concern, with social media and messaging apps highlighted as key enablers.

FICO noted that scams often bypass banking defences since victims authorise the transactions, making recovery difficult. The Philippines recorded Php5.82bn (USD100m) in cyber-related losses in 2024, primarily due to phishing, account takeovers, and card-not-present fraud. The Anti-Financial Account Scamming Act, signed in July 2024, aims to curb such activities by criminalising money mule operations. Only 14% of executives support full reimbursement for scam victims.