Digital technology connects us to others and keeps us informed and entertained—but it also enables scammers to wreak havoc online. From phishing emails to fake websites and money mulling, online scams are rising, and with AI, they are becoming increasingly sophisticated.
The scale of the issue is alarming. DICT, BSP, and the NBI regularly advise Filipinos to exercise caution against fraudulent schemes amid the rapid growth of digital technology.
According to the Cybercrime Investigation and Coordinating Center (CICC), cybercrime complaints in the Philippines rose to over 10,000 in 2024—three times higher than the 3,317 cases recorded in 2023—causing losses nearing ₱198 million. The Securities and Exchange Commission (SEC) has warned the public against “money mulling,” where individuals lend or sell their bank or e-wallet accounts for illegal activities, now punishable under law. Financial institutions are increasingly leveraging AI and machine learning to counter money mulling and related illicit activities.
The Money Mulling Challenge
Money mules pose a growing threat to the financial system. Fraudsters exploit synthetic identities, deepfakes, and fake accounts to misuse savings and investments for illegal transactions. These threats are not isolated—they are part of a complex problem challenging the entire financial ecosystem. With rising regulatory pressure and increasingly sophisticated money mule networks, Philippine banks and fintechs are adopting stronger measures to safeguard customers and their institutions.
AI-Driven Finance
Trusting Social Philippines (TSPH) is an AI-driven fintech that uses alternative data and AI to provide credit scoring, risk assessment, and financial insights. It offers AI-powered solutions for credit risk assessment, identity verification, and customer acquisition to serve millions of underbanked Filipinos. Trusting Social partners with banks and financial institutions to expand credit access for underserved consumers. By collaborating with regulators and fintechs, the company contributes significantly to national fraud prevention initiatives.
A Unified Ecosystem Response
On its seventh anniversary, Trusting Social highlighted its mission to combat financial fraud. The company emphasized that its credit risk and fraud prevention services make financial inclusion accessible, safe, and fraud-free. The celebration featured a fireside chat, “The Frontline Defense: Combating Money Mulling and Fostering a Secure Financial Ecosystem,” gathering key stakeholders from banking and fintech sectors to discuss collaboration for a secure financial system.
“Financial inclusion isn’t abstract; it fuels economic progress,” said Johnny Escaler, CEO of Trusting Social Philippines . “Our mission is to tackle one of the most fundamental problems of finance—powering inclusion with AI. The work we do has never been more critical.”
Trusting Social welcomed partners to a new AI-driven era of financial inclusion covering security, customer onboarding, KYC, fraud prevention, KYB, credit scoring, and trust.
Trust Insights
Trusting Social unveiled Trusting Insights 2.0 , enhancing the company’s credit risk intelligence services. Through expanded partnerships with telcos like Globe and Smart, and e-wallets like GCash and Maya, Trust Insights 2.0 can score up to 95% of adult Filipinos.
The company is introducing SelfieScore, a KYC service with real-time biometrics, addressing deepfake threats that steal consumer identities. These innovations reaffirm Trusting Social ’s commitment to proactively fighting financial fraud and money mulling.
“If fraudsters are organized, we need to be organized. If money mulling is rising, better AI models are needed. If OTP verification fails, we need biometrics,” said Jaideep Lakshminarayanan, CFO of Trusting Social . “Traditional methods will change; the market and fraudsters are evolving—we must evolve too.”
Inclusive Digital Finance
“Fraud is integral to financial inclusion,” Lakshminarayanan noted. “Through expanded partnerships, we scale trust to score 95% of the adult population. Inclusion without security is just a costly risk profile. Trust Vision ensures that doesn’t happen.”
Building Trust
AI is vital in combating online scams. It provides proactive, real-time, adaptive defenses, processing vast data to identify evolving threats beyond traditional security systems. AI builds trust in financial institutions, from banks to fintechs.
Law enforcement, policymakers, and security agencies must understand criminal adoption of AI to counter threats effectively. Globally, regulators aim to encourage AI innovation while mitigating abuse by illicit actors. Businesses, public interest groups, and the government must collaborate in this escalating AI arms race. Sharing insights and best practices strengthens collective defenses against online crime, particularly money mulling scams.
