Across Southeast Asia, cybercrime is expanding into organised, cross-border operations, exposing fintech platforms to more sophisticated and scalable threats and driving demand for stronger, layered security.
BANGKOK: Cybercrime in Southeast Asia is rapidly evolving into a large-scale, organised industry, posing significant risks to the financial technology (fintech) sector as digital adoption accelerates across the region.
The threat is also increasingly evident in Malaysia, where authorities and financial institutions continue to grapple with rising online scams, account takeovers and the widespread use of mule accounts to facilitate fraudulent transactions.
With millions of users moving to digital banking and e-wallet platforms, cybercriminals are exploiting gaps in identity verification and system security, highlighting the urgency for stronger safeguards.
Speaking at Money20/20 Asia 2026 in Bangkok from 21 to 23 April, VIDA founder and chief executive officer Niki Luhur said cybercrime is outpacing traditional identity security frameworks, requiring a fundamental shift in how risks are managed.
Cross-border syndicates drive scale
Luhur said fraud operations are now run by coordinated syndicates spanning Myanmar, Thailand and Indonesia.
In one case, authorities in Myanmar reportedly seized US$12 billion worth of Bitcoin linked to illicit operations, underscoring the scale of these networks.
“Cybercrime is democratic — they don’t care what size institution you are. They just scan for vulnerabilities. All the doors that are open, they exploit them,” he said.
Cybercrime threats go beyond deepfakes
While deepfakes draw attention, Luhur said the real risk lies earlier in the attack chain — particularly injection attacks from compromised devices using virtual cameras.
These tactics allow cybercriminals to bypass traditional biometric verification systems, reflecting a shift towards device- and infrastructure-level exploitation.
Malaysia steps up anti-scam measures
In Malaysia, Bank Negara Malaysia (BNM) and industry players have intensified efforts to combat scams, including tighter controls on mule accounts and enhanced fraud detection requirements.
Banks have introduced additional safeguards such as transaction alerts, cooling-off periods and stronger authentication measures, but scam-related losses remain a concern.
Shift towards layered security
To address these risks, VIDA advocates a layered approach that verifies the user, their identity and the device simultaneously.
This aims to close gaps in fragmented KYC and authentication systems across financial institutions.
New solution targets evolving fraud
VIDA also introduced ID FraudShield, designed to detect threats that conventional biometric systems may miss.
The solution integrates liveness detection with device intelligence, behavioural analytics and network monitoring within a single platform. – NMH
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