A coalition of artificial intelligence (AI)–powered fintech firms is stepping up efforts to address the growing problem of money muling and financial scams in the Philippines, saying traditional fraud-fighting tools are no longer enough for modern threats.
At the core of the initiative is Trusting Social Philippines (TSPH), an AI-based credit scoring and identity verification company, which recently used its seventh anniversary to call for deeper industry cooperation and to unveil new technology designed to counter fraud and mule-account networks.
Fintech sector flags surge in fraud activity
Money muling, the practice of recruiting individuals to lend or sell their bank or e-wallet accounts for criminal use — has become a top concern for regulators and financial firms alike. According to previous warnings from the Securities and Exchange Commission (SEC), mule accounts may be used in scams ranging from Ponzi schemes to illegal investments and money laundering.
Fraudsters are also increasingly relying on synthetic identities, deepfakes, and other AI-enabled tactics to obscure their operations. In this high-tech arms race, fintechs are turning to AI not just for underwriting and lending, but as a frontline defense.
Upgraded platforms strengthen anti-fraud measures
As part of its expanded fraud-fighting arsenal, Trusting Social introduced Trust Insights 2.0, an upgraded credit intelligence platform that draws on alternative data including behavioral signals and location information to more accurately evaluate credit risk across a vast swath of Filipino consumers. Through partnerships with major telcos (Globe, Smart) and payment platforms (GCash, Maya), the system can now “score” up to 95 percent of adult Filipinos.
On the identity-verification front, TSPH is rolling out a biometric solution called SelfieScore, which uses real-time face recognition to validate users. The move is pitched as a bulwark against deepfake fraud, where scammers impersonate real people using manipulated images or video.
Beyond one company: A collective approach
Trusting Social is calling for broader collaboration not just among fintechs, but with regulators, security agencies, and civil society. Its argument: AI-based fraud detection needs real-time threat intelligence, shared data, and joint strategy to be effective.
The company also introduced a broader fraud prevention portfolio called TrustVision, featuring tools for direct government ID validation, anti–money laundering (AML) screening, and eKYC (know your customer) with e-signatures. Importantly, they are phasing out one-time passwords (OTPs) for certain transactions in favor of Facial Biometric Transaction Validation, meaning users must validate their identity with a quick selfie.
Securing the financial ecosystem: Challenges and next steps
Financial crime is on the rise. The Cybercrime Investigation and Coordinating Center (CICC) reported a sharp increase in cybercrime complaints in 2024, underscoring the urgent need for stronger defenses.
Meanwhile, regulators like the SEC have already taken note of mule-account risk. The Anti-Financial Account Scamming Act (AFASA) criminalizes the use of mule accounts, and violators may face up to 14 years in prison or a fine of up to ₱5 million.
By combining AI-driven credit scoring, behavioral risk analysis, and biometric identity checks, TSPH and its partners hope to build a more resilient financial system where inclusion does not come at the expense of security.
The effort signals a turning point in Philippine fintech that AI is no longer just a back-office efficiency tool but a necessary frontline defense against increasingly sophisticated financial crimes. Whether this collaboration can successfully dismantle muling networks remains to be seen, but for now, fintechs are sending a clear message: they’re ready to fight back.
