The Philippines has emerged as one of the fastest-growing digital economies in Southeast Asia. In 2023, digital transactions in the country reached USD 26.18 billion. With more than 52% of its population relying on digital payments, the ecosystem has immense potential to support financial inclusion. However, alongside these opportunities, cyber threats such as deepfake and phishing attacks continue to pose significant risks.
In response to this landscape of both opportunities and challenges, VIDA and PayMongo have collaborated to deliver comprehensive digital security solutions. This partnership aims to protect businesses and consumers from cyber threats while driving inclusive and sustainable digital economic growth.
What is Deepfake?
Deepfake is an artificial intelligence (AI)-based technology used to create fake but highly realistic images, videos, or audio. The term combines "deep learning," a machine learning technique for recognizing patterns, and "fake," meaning false. Deepfake technology can superimpose someone's face onto another video or mimic someone's voice with high accuracy.
Initially, deepfake technology was used for entertainment, such as creating face filters on social media or assisting stunt doubles in movies. However, it has now evolved into a sophisticated and hard-to-detect tool for fraud.
Reports indicate that 2 out of 3 cybersecurity experts encountered deepfake being used in attacks on businesses in 2022, a 13% increase from the previous year. The most common platform for spreading deepfake-related fraud is email.
Why Deepfake is a Threat to Fraud Prevention
By its very definition, deepfake poses a significant threat due to its ability to create highly realistic fake identities. In the context of digital finance, deepfake can be used to deceive biometric verification systems, which are commonly used in Know Your Customer (KYC) processes. Here’s why deepfake is particularly dangerous:
1. Deceiving Biometric Verification Systems
Identity verification systems, such as facial recognition, are widely used because they are considered secure and convenient for identifying users. However, deepfake technology can bypass these systems. Fraudsters can create fake photos or videos mimicking a real person, making the system believe the false identity is legitimate.
2. Massive Financial Losses
Globally, AI-driven fraud, including deepfake, caused losses of up to USD 485.6 billion in 2023. Fraudsters can use deepfake to open fake accounts, access funds, or carry out illegal transactions.
3. Eroding Trust in Digital Services
When consumers become aware of deepfake-related fraud, they may hesitate to use digital financial services. This not only slows down the adoption of technology but also undermines efforts toward financial inclusion.
The Collaboration Between VIDA and PayMongo to Combat Deepfake Fraud
As a leading provider of digital identity solutions in Indonesia, VIDA brings cutting-edge technology to support PayMongo’s mission in the Philippines. PayMongo, a key player in the Philippines' digital payment ecosystem, can now enhance security at every touchpoint of its platform with VIDA's technology.
Using AI-driven solutions, VIDA helps PayMongo tackle various digital threats, including deepfake and phishing. The key benefits of this collaboration include:
1. Liveness Detection to Counter Deepfake
VIDA’s Liveness Detection technology ensures that only real individuals can pass biometric verification, preventing videos or images created with deepfake from deceiving the system.
2. AI-Powered Fraud Detection
VIDA’s AI algorithms can detect suspicious transaction patterns in real-time, helping to identify and block fraud before it impacts businesses. This technology has proven to reduce fraud risk by up to 30%.
3. Multi-Factor Authentication (MFA)
VIDA combines biometric authentication with additional layers of security, such as verified devices. This ensures that only authorized users can access services, significantly reducing the risk of credential theft.
4. Supporting Financial Inclusion
By creating a secure payment ecosystem, this solution empowers businesses of all sizes to participate in the digital economy without fear of cyber threats.
Sati Rasuanto, Co-Founder and President of VIDA, emphasized that trust is the foundation of digital transactions. “Our partnership with PayMongo not only enhances the security of digital payments but also empowers businesses and consumers to confidently participate in the digital economy. With the VIDA Identity Stack, we deliver comprehensive solutions capable of addressing threats like deepfake and other AI-based fraud.”
PayMongo CEO Jojo Malolos added, “Our mission is to empower Filipino businesses with seamless and secure financial operations. Through this partnership, we ensure that every transaction on our platform is protected from evolving cyber threats. By integrating VIDA’s advanced technology, we not only prevent fraud but also build a solid foundation for sustainable growth.”
Deepfake not only causes financial losses but also hinders financial inclusion. When the public loses trust in financial systems, businesses find it challenging to expand and achieve financial inclusion goals.
With VIDA and PayMongo, financial businesses can grow while staying protected from cyber threats. Consumers can enjoy secure transactions, paving the way for a more inclusive digital economy in Southeast Asia.
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