How Can Data Sharing Strengthen Fraud Defense?
A proactive, collaborative approach to data sharing is the most powerful way to guard against fraud.
In 2024 alone, Philippine financial institutions suffered staggering losses amounting to Php5.82 billion due to cyberattacks, according to data from the Bangko Sentral ng Pilipinas (BSP). It’s a significant leap from the previous year and a sign that fraud is evolving faster than most organizations can respond to it. From identity theft and phishing to deepfakes and synthetic identities, the nature of fraud has become more complex–making it harder for even the most vigilant institutions to stay ahead.
Beyond sophisticated scams lies a deeper, systemic problem: fragmentation. A fragmented, siloed system leaves dangerous blind spots. When banks, fintechs, and telcos guard their data without collaboration, scammers find their way through the cracks. The absence of shared information allows fraudsters flagged by one institution to simply move to another undetected, and start again.
“Fraud is no longer a challenge we can face in silos,” said Edith Roberto, Head of Individual Credit Solutions and Partnerships at CIBI Information Inc. a pioneering credit reporting agency in the Philippines. “We must shift to a proactive, collaborative approach through data sharing to prevent scammers from exploiting the gaps in a fragmented system.”
What Data Sharing Can Do
In traditional banking, data is often treated as a competitive asset: something to protect, not to share. But in the fight against fraud, collaboration is a form of protection. When organizations pool verified data and intelligence, they create an interconnected view of fraud patterns and the risks at hand.
Data sharing as a tool for combatting fraud, offers two key advantages.
It enhances fraud detection.
When institutions share data on suspicious activity, they gain real-time insights into new fraud tactics.
It leads to a faster response and higher recovery rates.
In a siloed system, a fraudulent transaction might not be caught until after the money is gone. A data-sharing platform, however, enables institutions to see red flags in real-time and allows them to communicate and act before the scam progresses.
CIBI President and CEO Pia Arellano believes that fraud detection strategies need to change. Preventive, rather than reactive measures, must be implemented. “Fraud will continue to evolve, but our defense must evolve faster. It’s up to us to adopt measures that protect the integrity of our businesses before they are compromised,” she said.
A Collective Defense: The CIBI Fraud Bureau
Recognizing the urgency of a unified front, CIBI has introduced the CIBI Fraud Bureau, a groundbreaking initiative designed to turn data sharing into a collective defense mechanism.
The Fraud Bureau operates on the principle that fraud is the common enemy, and the most effective way to fight it is through shared intelligence. Through a data-sharing ecosystem, participants across industries contribute verified information on confirmed and suspected scammers. When an organization receives a new application or transaction, it can cross-check it against the bureau’s database and be instantly alerted if the individual has been flagged elsewhere.
Participation is based on data reciprocity. Members who share verified data gain access to the collective pool. This model ensures that the database continues to expand, strengthening the shield that protects the country’s financial ecosystem. Crucially, all data sharing follows strict data privacy and security protocols, ensuring full compliance with Philippine regulations.
Aligning with the BSP’s Vision
The BSP has long emphasized the importance of cybersecurity and fraud prevention as part of its Digital Payments Transformation Roadmap. The CIBI Fraud Bureau directly supports this mission by providing a concrete, industry-led solution that fosters collaboration and accountability.
By bridging the gap between institutions, the initiative does more than protect bottom lines. It reinforces public trust in the digital financial system.
As cybercrime grows more sophisticated, one thing is clear: the battle against fraud can no longer be fought alone. Collaborative data sharing, guided by responsible governance, is the strongest defense the Philippine financial industry can build.
