One in three people in Southeast Asia have experienced online fraud amid the boom in online activity such as e-commerce and remote working sparked by the Covid19 pandemic in 2020, says a new report compiled by ADVANCE.AI, a leading AI and big data company in Asia. It further identified online fraud and higher debt risk as two top critical enterprise risks facing businesses in emerging markets in Southeast Asia like Indonesia, Philippines, Thailand, Vietnam and Singapore.

Predicted to be the fourth largest economy by 2030, Southeast Asia is one of the fastest growing economies in the world but its rapid growth makes it an easy target for fraud and online scams. In 2019, Southeast Asia lost US$260 million to digital fraud. The report found 71% of online fraud is from identity theft, 66% is from phishing activities and 63% is from account fraud. These top three types of fraud crime were largely caused by inefficiencies in identity verification, the lack of awareness about credit and digital trust and high costs and inconsistencies associated with anti-fraud implementations.

Bernardi Susastyo, Chief Commercial Officer of ADVANCE.AI, said: “COVID19 has changed the way people in Southeast Asia live, work and conduct their businesses. Fraud criminals have also adapted their tactics to exploit those changes and the usual processes and tools that are being used to manage fraud may simply be insufficient. Businesses will need to assess their readiness to manage online fraud risk and tap on the power of big data, AI technology and other advanced risk assessment technologies to help them better safeguard their assets and promote greater economic financial inclusion at the same time.”

Source: tfageeks news