by Alexis Tuble, Correspondent
Amid the rapid growth of digital banking and e-wallet usage in the Philippines — which accounted for over 52.8% of the total volume of retail transactions in 2023, up from 42.1% in 2022, cyber threats are becoming increasingly serious, posing significant risks to both public funds and trust. This surge highlights the urgent need for AI-Driven cybersecurity solutions, as traditional defenses struggle to keep up with the scale and sophistication of modern cyberattacks.
As more Filipinos shift to cashless transactions and rely on online financial platforms, cybercriminals are also evolving in sophistication. Phishing scams, malware attacks, identity theft, and data breaches are now more frequent and more damaging than ever. This surge in digital activity creates a wider attack surface for hackers to exploit, particularly in countries where many institutions still lack robust cybersecurity infrastructure.
If financial institutions and digital service providers fail to strengthen their cybersecurity measures, they not only risk losing billions of pesos to fraud but also face the bigger challenge of eroding public confidence. Trust, once broken in the digital financial system, can be extremely difficult to rebuild, especially in communities where digital banking is still gaining ground.
Cybersecurity threats in banking
The Bangko Sentral ng Pilipinas (BSP) reported that cyberattacks caused the banking sector to lose ₱5.82 billion in 2024, a 2.6% increase from 2023. These attacks involved phishing, card-not-present fraud, account takeovers, and other sophisticated schemes that now leverage automation and artificial intelligence (AI).
Scammers have increasingly used AI to generate fake transaction screenshots and deepfake payment notifications, effectively tricking both individuals and financial institutions. These deceptive tactics grow more difficult to detect due to the enhanced realism and speed of AI-generated content.
In response, the BSP released a public advisory, urging consumers to stay vigilant and verify transactions before sharing any personal or financial information. The central bank stressed that as digital threats evolve, users must also sharpen their security awareness and practices.
Banks urged to adopt AI-driven cybersecurity as threats intensify
As cyber threats grow more advanced, experts urge Philippine banks to adopt AI-powered defenses to protect customer data and financial systems. Unlike static security systems, AI tools adapt in real time, flagging suspicious transactions and enabling quick response.
Cybercriminals now use AI and automation to launch sophisticated attacks—such as deepfakes and fake payment proofs. Experts warn that “hyper-personalized” scams will surge in 2025, exploiting personal data and mimicking legitimate behavior.
Cybersecurity firms urge banks, fintech companies, and regulators to strengthen collaboration as AI-driven threats intensify. They warn that without advanced tools—such as real-time anomaly detection and predictive threat modeling—banks face increased risk of financial losses and reputational damage.
In response to this escalating risk, the Bangko Sentral ng Pilipinas (BSP) recently unveiled its Cyber Resilience Plan 2024–2029, which maps out a roadmap for integrating AI across the financial sector. The plan includes coordinated incident response systems and enhanced information-sharing mechanisms among banks and fintech players.
The BSP emphasizes that staying ahead of cybercriminals requires more than isolated upgrades—it demands a united, industry-wide strategy anchored in innovation and resilience.
If banks fail to act now against the rising threat of AI-driven cyberattacks, it’s not just money that’s at stake — millions of depositors could lose trust in the financial system. In an era defined by digital transformation, reactive measures are no longer enough. The industry must shift to a proactive stance, and today, AI stands as the most effective weapon in the fight against evolving cyber threats.
Industry experts are calling on Philippine banks to take urgent steps in securing the future of digital banking, as cyber threats continue to escalate in scale and sophistication. They emphasize that financial institutions must embrace innovation by adopting advanced technologies such as artificial intelligence (AI) and machine learning to proactively detect and stop cyberattacks.
At the same time, experts urge stronger collaboration between banks, fintech companies, regulators, and cybersecurity firms to enable faster threat response and real-time information sharing. They also stress the need for immediate investment in intelligent, AI-powered defense systems that adapt to evolving threats and monitor transactions as they happen.
Without swift and coordinated action, experts warn that banks not only risk financial losses but also face a deeper crisis: the erosion of public trust in the digital financial system.
