Increasing account insecurity from financial fraud worries about 71.4 percent of Filipinos based on a survey of GSMA, a global group of mobile operators and organizations across the mobile system and related industries.
“More than a quarter of respondents from across Indonesia, Malaysia, the Philippines, Singapore, and Thailand have been victims of financial crimes, such as online hacking, identity theft and bank card theft,” GSMA’ report, entitled “Consumer Attitudes Toward Fraud and Opportunities for Mobile Network Operators (MNOs) in Southeast Asia,” was quoted by Business World.
The report looked into consumer attitudes towards fraud in five Southeast Asian markets, namely the Philippines, Thailand, Singapore, Malaysia, and Indonesia.
The survey said fraud is a growing concern among consumers, especially involving financial transactions.
It said 82.8 percent of Filipino respondents said they would change their financial provider for better security. It also said that 28.6 percent of Filipino respondents have encountered financial fraud at least once, and 26.4 percent are “very worried” about becoming a victim of fraud.
Several markets also showed concern over SIM (Subscriber Identification Module)-swap fraud.
This occurs when a hacker gets a mobile number by transferring it to a new SIM card, GSMA said.
It said 71 percent of Filipino consumers reported the “highest levels of concern” SIM-swap fraud. Consumers in Indonesia (78 percent) and Singapore (50 percent) also showed concern over cases of SIM-swap fraud.
“In markets like Indonesia and the Philippines, where SIM-swap fraud is a major concern, MNOs can develop APIs (Application Programmable Interfaces) that provide real-time monitoring and alerts for SIM changes,” GSMA said.
“These APIs would notify fintech platforms if a user’s SIM card has been swapped, allowing them to take preventive actions, such as temporarily locking accounts or requiring additional authentication steps.
It added that more than 60 percent of respondents in Malaysia, Indonesia, and the Philippines are “very worried” about the misuse or theft of Personally Identifiable Information and financial data, GSMA said.
“These concerns are rooted in the growing number of high-profile data breaches across the region,” it added.
On who is the most responsible for preventing fraud and ensuring security, respondents in the region said this should be account custodians, or banks and e-wallet providers, among others.
“Between 43 percent (Malaysia) and 62 percent (Indonesia) of respondents assigned primary responsibility to the companies operating the services. This places fintech companies, banks, and other financial institutions at the forefront of fraud prevention efforts,” GSMA said.
“However, consumers also expect device manufacturers (such as Apple, Google, and Samsung) to play a key role in protecting their accounts. This expectation is higher in markets like the Philippines, where 29 percent of respondents believe that device manufacturers bear some responsibility, compared to 15 percent in Indonesia,” it added.
About 10 to 13 percent of respondents across all five markets covered in the survey said they also expect MNOs and their governments to bear responsibility for the prevention of fraud, it said.
“MNOs in Southeast Asia are uniquely positioned to address the growing concerns about fraud. By developing APIs that integrate with fintech platforms, banks, and digital commerce providers, MNOs can offer enhanced security features, real-time fraud detection, and data-sharing tools that can help protect consumers from various forms of fraud,” GSMA said.
“One of the most significant opportunities for MNOs lies in the development of APIs that strengthen account security and prevent fraudulent activities like SIM-swap attacks. The high level of concern surrounding these attacks, particularly in markets like Indonesia and the Philippines, makes this an area of urgent need.”
Two-factor authentication and SIM-swap prevention APIs that provide real-time monitoring and alerts for SIM changes can help financial institutions, payment firms and online retailers strengthen account security, GSMA added.
“Given the high penetration of mobile devices across Southeast Asia, with 91 percent of respondents in Indonesia and 80 percent in the Philippines accessing their financial accounts via mobile, MNOs are well-positioned to develop APIs that enhance the convenience and security of mobile-first financial services,” it said.
“The widespread use of e-wallets in markets like Indonesia and the Philippines presents a significant opportunity for MNOs to develop APIs that integrate mobile services with e-wallet platforms. These APIs would provide fintech and other industries seamless identity verification, transaction monitoring, and secure fund transfers.”
#WeTakeAStand #OpinYon #OpinYonNews #Finance #FinancialFraud #OnlineFraud