Deepfakes and deep trouble
We are witnessing a surge in sophisticated scams due to artificial intelligence (AI).
Cybercriminals are now leveraging deepfake technology, which uses AI to generate highly realistic yet entirely fake audio and video content, often portraying individuals as saying or doing things they never actually did. Scammers exploit this to manipulate victims into believing false information, resulting in financial losses or spreading misinformation. Once seen only as cinematic effects, these “deepfakes” can mimic the voices and likenesses of trusted personalities.
In March 2025, the Securities and Exchange Commission (SEC) warned about the rising number of these scams, highlighting the difficulty in discerning genuine content from fake content. The SEC is prompting urgent action from regulatory bodies and industry leaders to address the escalating threat.
What are some of the most common tactics used in these scams? One of the most prevalent is impersonating authorities or executives. Fraudsters create deepfake videos or audio recordings of company executives instructing employees to transfer funds or disclose sensitive information, leading to financial theft.
Some scammers even use AI for family emergency scams, cloning the voice of a victim’s relative to fabricate urgent financial distress and manipulate emotions to extract money. Deepfakes also create falsified endorsements from celebrities or public figures, promoting fraudulent investment schemes or products to mislead consumers.
The proliferation of these advanced scams using AI-generated technology is alarming. We must address impersonation scams collectively and nationally, as financial losses are escalating quickly. In 2022 alone,[1] these scams resulted in losses of £107 million for UK consumers, $2.6 billion for the US and $101 million for Singapore.
The Asia-Pacific region, specifically, is experiencing significant vulnerabilities. Between 2022 and 2023, deepfake-related fraud cases surged by 1,530 percent, while the Philippines saw an astronomical 4,500 percent increase, highlighting the nation’s heightened susceptibility to these scams.[2]
The rise of deepfake scams has profound implications for the fintech sector. They erode consumer confidence and trust in digital financial services, hindering the adoption of fintech solutions. We anticipate operational challenges as financial institutions face difficulties verifying customer identities, increasing the risk of fraud and operational costs. The need for improved security measures may lead to stricter regulations, impacting fintech operations and innovation.
And it isn’t just deepfakes that are causing deep trouble. The rise of AI has introduced new challenges, including data poisoning and model inversion attacks, where malicious actors manipulate AI systems or extract sensitive information. These threats are exposing critical vulnerabilities in our cybersecurity defenses.
In 2024, 717 active phishing alerts were reported for Cyberint’s Philippine clients, indicating a persistent threat that requires continuous vigilance. The volume of malicious cyber activity against the Philippines quadrupled in the first quarter of 2024 compared to the same period in 2023.
The Philippine cybersecurity market is expected to grow by 13 percent to $387.10 million by 2028.[3] A 2023 survey of 100 Philippine firms showed that at least one in four companies were exposed to cyber-attacks such as malware, phishing and password-related breaches.
In February 2025,[4] Philippine authorities reported detecting attempts by foreign actors to access intelligence data. While no breaches occurred, these incidents highlight the ongoing risks posed by advanced persistent threats (APTs), often state-backed, targeting government systems.
The Philippines has been actively working on its cybersecurity framework to address the evolving threat landscape, with particular attention to the implications of artificial intelligence (AI). We scored 93.49 in the Global Cybersecurity Index (GCI) 2024, placing us in Tier 2. This score reflects the country’s commitment to cybersecurity infrastructure across various dimensions, including legal measures, technical capabilities and organizational strategies.
As digital transactions and AI-driven services become more ingrained in everyday life, the need to fortify digital infrastructure has never been more critical. Cybersecurity must be embedded into the DNA of digital transformation strategies. Building trust in digital finance demands robust security measures that evolve as fast as the threats themselves.
The rise of AI-driven threats commands a proactive, intelligence-led approach to cybersecurity. Governments and businesses must adopt a multi-layered security strategy that includes AI-powered threat detection, zero-trust architectures, and continuous workforce training. Collaboration between the public and private sectors is crucial for mitigating evolving cyber threats.
Companies like Palo Alto Networks have emphasized integrating AI into cybersecurity strategies. Current discussions center on how AI can fine-tune threat detection and response capabilities.[5]
Leading technology firms stress that digital infrastructure is an enabler of innovation. Without a robust cybersecurity foundation, emerging technologies like blockchain, cloud computing, and AI-driven automation remain vulnerable to exploitation.[6]
The Philippines is working to align its data privacy and cybersecurity regulations with international standards. It has developed the National Cybersecurity Plan (NCSP) 2023-2028, which aims to protect institutions, resources, and citizens from cyber threats. Our Congress must swiftly pass priority measures, particularly on the Critical Information Infrastructure, Cybersecurity Act and the Open Access in Data Transmission Act.
A multi-faceted approach is essential to ramping up our robust defense infrastructure. Regulatory initiatives are necessary, such as the SEC collaborating with online platforms and the Department of Information and Communications Technology (DICT) to trace fraudulent transactions and improve detection capabilities.[7]
Digital infrastructure is the backbone of financial inclusion, enabling underserved communities to access banking, fintech solutions, and essential government services. However, these advancements remain vulnerable to exploitation without strong cybersecurity measures, undermining trust and accessibility.
More than just a protective measure, cybersecurity is a fundamental pillar of digital resilience.
A secure and resilient digital ecosystem is essential for bridging the financial gap, fostering inclusive economic growth, and safeguarding the future of digital finance.
As AI-powered deception grows more sophisticated, the battle for truth and trust in digital finance intensifies. If we fail to stay ahead, deepfakes will create not just illusions but real-world financial disasters. The technology that drives innovation also opens doors to exploitation, making it imperative that our security defenses advance just as swiftly.
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Lito Villanueva is the Philippines’ leading and award-winning thought leader in inclusive digital finance. As EVP and Chief Innovation and Inclusion Officer at RCBC, he has led several digital initiatives at scale. He is also the founding chairman of Fintech Alliance PH, overseeing 95 percent of the nation’s digital retail financial transactions. He is the first global chairman of the South Africa-based Alliance of Digital Finance Associations, a co-founder of the Asia FinTech Alliance, and a permanent council member of the Asia FinTech Forum. He has substantially impacted the fintech landscape in the Philippines through his leadership and innovative efforts. His contributions have been crucial in advancing the fintech ecosystem in the Philippines, making financial services more inclusive and efficient.
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[1] https://fintechnews.sg/93301/regtech/deepfake-scam-asia-banking-finance/
[2] https://globalinitiative.net/analysis/deepfakes-ai-cyber-scam-south-east-asia-organized-crime/
[3] https://www.trade.gov/market-intelligence/philippines-cybersecurity-market
[5] https://www.statista.com/topics/11332/cybersecurity-and-crime-in-the-philippines/
[7] https://fintechnews.ph/66056/security/sec-warns-filipino-deepfake-scams-in-philippines/
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