Cyber fraud costs Philippine banks PHP 5.82B in 2024

Cyberattacks cost Philippine financial institutions PHP 5.82 billion in 2024, a sharp increase that underscores the growing sophistication of fraud schemes, according to the Bangko Sentral ng Pilipinas.

The surge in cybercrime—from identity theft to deepfakes—reflects how fraud tactics continue to evolve faster than many institutions can defend against.

A key vulnerability lies in the fragmented nature of the financial ecosystem, where fraud flagged at one bank may go undetected at another due to the lack of shared information.

“Fraud is no longer a challenge we can face in silos,” said Edith Roberto, head of individual credit solutions and partnerships at CIBI.

“We must shift to a proactive, collaborative approach through data sharing, to prevent scammers from exploiting the gaps in a fragmented system.”

Sharing data across institutions allows for a collective defense, expanding the reach and depth of fraud detection beyond what a single entity can achieve.

When companies pool information, they create a more robust database that helps identify patterns and flag suspicious behavior more effectively.

This approach offers two key advantages: stronger fraud detection and faster response times that can help recover stolen funds before they vanish.

In isolated systems, fraudulent activity is often flagged too late—after the money is already gone—while data-sharing platforms enable real-time alerts and faster action.

“Fraud prevention strategies have to change from reaction to prevention,” said Pia Arellano, president and CEO of CIBI.

“Fraud will continue to evolve, but our defense must evolve faster. It’s up to us to adopt measures that protect the integrity of our businesses before they are compromised.”

To meet this challenge, CIBI launched the CIBI Fraud Bureau—a centralized fraud defense platform for the Philippine financial system.

The bureau enables traditional banks, fintech firms, telcos, and other sectors to contribute to and access a shared database of confirmed and suspected fraudsters.

When an institution processes an application, the system checks for any fraud flags reported by other participants, helping to intercept fraud attempts early.

Participation in the bureau is based on reciprocity, meaning organizations must contribute data to access the collective intelligence pool.

This ensures the database continually grows and provides broader protection while complying with data privacy laws to maintain user security.

The ultimate goal is to expand collaboration beyond the private sector to include government agencies and regulators.

The initiative supports the BSP’s broader mission to reduce fraud by offering a scalable, real-time solution that strengthens industry-wide resilience.

Founded in 1982, CIBI Information Inc. is the Philippines’ first credit reporting agency and is accredited by the Credit Information Corporation.

CIBI provides risk intelligence services to more than 500 organizations across banking, finance, telecommunications, and other sectors.