New technologies bring both opportunities and risks. Artificial intelligence (AI) offers positive potential by simplifying repetitive tasks and enabling digital platforms to make smarter, data-driven decisions. Grab uses AI to enhance both user experience and internal operations.
But AI also brings risks, some of which are already here. In digital fraud, for example, criminals are leveraging AI to scale up and refine their scams. AI technology “enables criminals to target victims in a more scalable and sophisticated manner,” said Puneet Gambhir, Head of Risk at Grab.
The Covid-19 pandemic expanded the pool of potential scam victims as more users turned to online services. “This increased fraudsters’ chances, even if the number of these criminals remained constant,” Gambhir added. According to The Straits Times, new internet users are particularly vulnerable due to limited knowledge of online security practices like secure passwords and identity verification.
(Also read: GrabDefence: Building anti-fraud technology for Southeast Asia’s digital age)
When scammers exploit AI, anti-fraud tech and government efforts must also evolve to counter them. Consumers can protect themselves online by staying alert and taking simple precautions.
AI tools offer multiple ways for online scammers to improve their tactics. Generative AI, for example, can help scammers produce thousands of realistic phishing emails or fake videos (deep fakes), which can fool identity verification processes, Gambhir explains. AI can also help scammers disguise their locations, create synthetic identities, and re-engineer applications.
Security researchers have shown how AI can defeat KYC (know your customer) identity checks. Scammers can use tools to create fake documents, which AI-enhanced software can then pair with realistic selfies or videos to pass verification.
In a prominent case in May, a company employee was tricked into paying out US$25 million after attending a video call with deep fakes of his colleagues.
According to the Global Anti-Scam Alliance (GASA), “AI is complicating traditional fraud detection mechanisms.”
Carlo Licup, Head of Customer Success for GrabDefence, Grab’s anti-fraud platform, noted that even without advanced technical skills, scammers now have access to AI-enabled tools that simplify creating fake accounts. “A regular user can create a new face and set up fake accounts easily using face-swap apps,” Licup said.
A surge in fake accounts is a growing issue as users’ lives move increasingly online. Businesses strive to offer interconnected digital experiences, like unified QR code payments, which unfortunately provide a rich environment for cybercriminals.
Such digital ecosystems can accelerate fraudulent activities, such as credit card fraud or money laundering, by allowing criminals to exploit them before detection. According to Licup, fraudsters often control multiple fake or “mule” accounts across various platforms. These accounts, many created with AI-generated identities, are instrumental in moving illicit funds and facilitating cross-border payments.
“In a recent case, a victim’s bank account was compromised,” shared Licup. “The stolen funds were quickly transferred to a digital payment platform, dispersed into several mule accounts in smaller amounts, then moved out of the platform through peer-to-peer payments or even QR code transactions, making them difficult to trace.”
Licup added that even when flagged, these mule accounts are quickly replaced by new ones, allowing fraudsters to continue operating with minimal disruption.
To combat sophisticated fraud tactics, anti-fraud technology must evolve.
Anti-fraud platforms like GrabDefence are increasingly using AI to detect and intercept fraud networks. For instance, deep learning models such as Graph Neural Networks (GNN) can help identify fraudsters, revealing suspicious connections between seemingly unrelated actions. Due to AI’s ability to handle large amounts of unstructured data compared to traditional methods, it’s more likely to detect if someone is misusing stolen credit card information across multiple fake accounts.
Grab also collaborates with academic researchers to advance detection techniques and improve fraud prevention capabilities. This research helps fraud detection move faster and become more efficient, so that fraudulent activities can become apparent in near real-time.
(Also read: A glimpse into the cutting edge of anti-fraud research)
Government support is equally critical in the fight against digital fraud. In Singapore, the Ministry of Digital Development and Information introduced a “Shared Responsibility Framework” this year, which holds banks and telcos accountable for protecting users from phishing attacks. This initiative has led other Southeast Asian authorities to consider similar approaches. Bank Negara Malaysia, for instance, now requires banks to implement malware shielding on their applications.
Governments also play a crucial role in disrupting large fraud syndicates. A UN report found that professional scam centres are prevalent in Southeast Asia, with operations in the Philippines, Laos, Cambodia, and Myanmar. These “scam farms” take advantage of the increase in potential victims, and some even use forced labour.
As fraud techniques evolve, continuous improvements in anti-fraud technology are essential to stay ahead of criminals. Gathering up-to-date intelligence on scam tactics, using AI to analyse massive data sets for suspicious patterns, and working closely with authorities and the public are all necessary steps to strengthen the industry’s defence against digital fraud.
In the meantime, there are many effective measures companies and users can take to reduce risk of falling prey to fraud. Some cybersecurity practices are pretty simple, such as picking secure passwords and changing them regularly. Another is making financial transactions only on safe, known networks like on your personal mobile data plan or home Wi-Fi, as opposed to public Wi-Fis.
A host of different technologies and precautions companies can employ to fight fraud are available. These include investing in advanced fraud detection solutions such as device intelligence and fingerprinting, implementing strong eKYC verification and multi-factor authentication, among others.
Just as important as the technologies and improved processes companies implement is investing in educating their users, keeping them updated about the latest fraud techniques, and how to protect themselves from it. More details about these are available on GrabDefence, which helps mobile businesses protect their platforms from fraudsters.
While it may be impossible to eliminate fraud completely, sustained efforts to innovate and collaborate are key to reducing its impact and protecting users.
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GrabFood delivery-partner, Thailand
GrabFood delivery-partner, Thailand
COVID-19 has dealt an unprecedented blow to the tourism industry, affecting the livelihoods of millions of workers. One of them was Komsan, an assistant chef in a luxury hotel based in the Srinakarin area.
As the number of tourists at the hotel plunged, he decided to sign up as a GrabFood delivery-partner to earn an alternative income. Soon after, the hotel ceased operations.
Komsan has viewed this change through an optimistic lens, calling it the perfect opportunity for him to embark on a fresh journey after his previous job. Aside from GrabFood deliveries, he now also picks up GrabExpress jobs. It can get tiring, having to shuttle between different locations, but Komsan finds it exciting. And mostly, he’s glad to get his income back on track.