BSP calls for stronger fraud safeguards as financial services go digital

Scams using urgent messages are a key threat to digital bank confidence.

Banks and fintech companies are urged to strengthen monitoring systems and consumer protection as fraud risks rise in an increasingly digital financial services landscape, said Charina De Vera-Yap, Managing Director at the Bangko Sentral ng Pilipinas (BSP).

“Trust is the most valuable asset in the financial system,” De Vera-Yap told the Asian Banking & Finance and Insurance Asia Summit - Philippines on 10 March.

However, fraud incidents could undermine confidence in digital financial services and reverse progress in expanding financial access.

De Vera-Yap noted how scams are becoming increasingly sophisticated, often relying on urgent messages that pressure consumers into clicking on malicious links. “The loss is not only financial but also a loss of confidence.”

“When confidence disappears, people often return to cash, undoing years of progress towards financial inclusion,” she added.

She said fraud prevention requires coordinated action across the financial ecosystem. Financial institutions must continue strengthening fraud monitoring, whilst technology providers must ensure digital infrastructure remains secure.

“All of us must help consumers recognise risks and report suspicious activity easily,” De Vera-Yap added.

Digital finance has grown significantly in recent years, with services like payments, lending, and insurance distribution becoming faster and more accessible through smartphones. “But the real question is this: is the financial system actually becoming better for the people it is meant to serve?”

The bank is also encouraging financial institutions to look beyond traditional financial inclusion metrics such as account ownership.

“For many years, financial inclusion was measured largely through access,” De Vera-Yap said, referring to indicators such as the number of accounts or digital wallets created. “But access is only the first step.”

The managing director stressed financial health—the capacity to meet daily needs, weather unexpected emergencies, and achieve long-term goals—saying that financial services should help navigate today's responsibilities, tomorrow's uncertainties and future aspirations.

According to De Vera-Yap, the BSP’s approach is anchored on three priorities—financial inclusion, consumer protection, and financial education—which she said are necessary to build trust and sustain participation in the financial system.