Because of its position as a hub in Southeast Asia with substantial remittance inflows and a rapidly expanding digital finance sector, the Philippines has become a high-risk target by fraudsters and criminal networks. Unregistered, illegal remittance operators still process high volumes of remittances with no clear audit trails, and they attract clients with better exchange rates and fewer formalities. By structuring multiple small transactions designed to avoid detection, these operators often serve as conduits for laundering money obtained from illicit activities. The growing adoption of digital transactions has made online accounts a target for phishing, social engineering and credential stuffing. There have also been several cases of unauthorized data collection where cybercriminals attempted to access information from the national ID by unauthorized scanning or data collection.

Investment scams have also seen a sharp rise with promises of high returns, guaranteed profits and often using flashy online promotions that seem legitimate. Social media platforms such as Facebook and Instagram have become prime tools for fraudsters to target overseas Filipino workers (OFW) who are based far away and without direct means to verify claims. Such social media platforms have also been used by fraudsters to promote counterfeit goods or services and avoid apprehension by requesting for upfront payment from victims through untraceable digital wallets or bank transfers. A report by the Global Anti-Scam Alliance found that 39% of Filipino consumers lost money to eCommerce scams in 2024, with an average loss of US$275 per victim.

Money mule operations have also expanded significantly in the Philippines due to various enabling factors such as the sale of ATM accounts on the dark web and criminal networks targeting low-income individuals to open dormant or “sleeper” bank accounts. Ironically, the introduction of the digital ID system has exacerbated the problem by relaxing restrictions on opening new accounts and reducing the rigor of the verification process. To make matters worse, many banks in the Philippines have yet to adopt the QR-code verification function on the PhilSys digital ID, which limits their ability to perform real-time validation of the ID’s legitimacy during account opening.

To effectively tackle financial crime, a multi-pronged approach is required that encompasses stronger cross-border collaboration and utilization of advanced behavioral analytics and AI models to support dynamic real-time detection. Furthermore, the importance of educating and constantly reminding Filipino consumers of the dangers and risks of financial crime cannot be overstated.