Philippines Fights Rising OTP Fraud and SIM Swap Scams

The Bangko Sentral ng Pilipinas (BSP) warns that traditional one-time passwords (OTPs) are no longer sufficient, fueling a surge in OTP fraud and SIM swap scams. In 2024, over 10,000 cybercrime complaints resulted in ₱198 million in losses, with 65% tied to financial scams involving OTP fraud, SIM swaps, and smishing. Scammers use prohibited hyperlinks to redirect users to phishing sites for test deposits and OTP verifications, hijacking legitimate banking and government threads, notably in “Ayuda” relief schemes. A thriving black market sells pre-registered SIMs for around ₱5,000, enabling syndicates to avoid SIM registration laws and target victims domestically and abroad. AI intensifies these efforts by personalizing attacks and mapping social networks, yet it also offers real-time fraud detection, as demonstrated by Google’s SynthID tool and 24/7 monitoring capabilities. The CICC advocates a “digital bayanihan” whole-of-government approach—uniting the BSP, AMLC, law enforcement, banks, e-wallet providers, and telcos—to adopt adaptive authentication, bolster cooperation with global platforms, and leverage AI and blockchain. For individuals, vigilance is paramount: never click suspicious links, protect OTPs, and verify sources before acting.