Emerging fraud trends in Southeast Asia (SEA) for 2025: how to stay ahead with advanced fraud prevention solutions

As Southeast Asia (SEA) accelerates its digital transformation, the region—including Malaysia, Singapore, Thailand, Vietnam, Indonesia, and the Philippines—faces escalating fraud risks.

By 2026, experts predict a surge in application fraud, transaction fraud, and identity theft, driven by rapid fintech adoption and evolving cybercriminal tactics. For financial institutions, investing in robust fraud prevention solutions is no longer optional—it’s a necessity. This blog explores the 2025 fraud landscape in Southeast Asia (SEA) and highlights how companies can safeguard their operations.

How these frauds shape 2025 fraud trends

Southeast Asia’s digital economy is projected to exceed $330 billion by 2025 (Google, Temasek, Bain & Co.), but this growth has attracted sophisticated fraudsters. Key trends shaping 2025 include:

1. Application fraud

Fraudsters are exploiting gaps in digital onboarding processes. In 2024, Malaysia’s Central Bank reported a 35% year-on-year increase in fraudulent loan applications, with criminals using synthetic identities (fake IDs combining real and fabricated data). Similarly, Indonesia’s Financial Services Authority (OJK) flagged a 40% rise in fake insurance claims linked to manipulated documents.

2. Transaction fraud

Transaction monitoring systems are under strain as criminals deploy AI-driven tactics. In 2025, Singapore’s Cyber Security Agency (CSA) revealed that phishing scams cost businesses over $1.2million within 3 months from October to December 2024. Countries like Thailand and Vietnam encountered fraudulent QR code payments rising by 60%.

3. Cross border money laundering

The rise of generative artificial intelligence (GEN AI) has significantly simplified cross border money laundering. Syndicates now leverage AI to create complex digital fraud schemes, masking their operations of money laundering and make it difficult to trace the source of illicit funds.

Why traditional methods fail

Traditional systems, reliant on rule-based algorithms, struggle to detect AI-generated deepfakes and behavioural anomalies. Rule-based algorithms can be easily bypassed by fraudsters using generative AI, as they swiftly adapt to pre-defined rules. Traditional methods that relying on rule-based algorithms comes with scalability limitations. As AI-driven fraud becomes increasingly sophisticated and comes in high volume, manually updating rules are insufficient to keep up the pace of AI powered fraud schemes in both volumes and sophistication.

Fraud Prevention Solutions for 2025

To combat these threats, financial institutions must adopt advanced fraud prevention solutions with real-time transaction monitoring and multi-layered authentication. Here’s what works:

1. Machine learning behavioural analytics

Machine learning models analyse user behaviour (e.g., typing speed, device tilt) to flag suspicious activity. For instance, Singapore’s DBS Bank achieved a 25% improvement in efficiency in fraud prevention by integrating machine learning into their fraud prevention systems

2. Real-time transaction monitoring

Advanced systems cross-reference geolocation, IP addresses, and spending patterns. For example, Ambank deployment of real-time transaction monitoring solutions has successfully prevented more than Rm2.7million potential fraud since implementation.

3. Leveraging multiple databases

Injection of multiple data sources provide a comprehensive view of potential fraudulent activities, empowering financial institutions to enhance fraud detection accuracy and minimise false positive alerts.

Future-proof your business today

The Asia Risk Center estimates SEA businesses could lose $8 billion to fraud by 2026. Proactive measures like advanced transaction monitoring and application fraud detection not only mitigate fraud losses but also build customer trust.

GBG’s fraud prevention solutions are tailored for SEA’s unique challenges. We have professional team located in local to support your businesses’ needs. Our solutions combine predictive analytics, application fraud detection and global data intelligence to stay ahead of emerging fraud risks. Contact us to know more.