PETALING JAYA: Asia Pacific’s (Apac) digital economy has entered a new phase of risk.
Mobile-first banking, eCommerce, super apps and real-time customer engagement are creating enormous growth opportunities, but they are also giving fraudsters more entry points.
The challenge is no longer just the volume of fraud, but the speed, scale and automation made possible by artificial intelligence (AI), according to Infobip director of telecom growth and strategy Asia Goran Valjak.
Infobip’s 2026 Fraud & Security Report highlights a 77% increase in detected threats, driven by AI-powered messaging and authentication attacks.
“Businesses are adapting fast, with AI-powered fraud detection growing 71% year-on-year, and pattern-based detection rising 105%, marking a clear shift from static protection to adaptive security,” said Valjak.
“For CEOs and boards, fraud is now a business issue, not just a cybersecurity concern. Fraudulent messages, account takeover attempts and unreliable authentication journeys affect trust, conversion, retention and regulatory standing.”
The challenge is balancing security with user experience. Too much friction can frustrate legitimate customers; too little security exposes the business to fraud.
The objective is invisible security – protecting users without making trusted interactions feel suspicious.
Modernising authentication does not mean abandoning SMS OTP.
It remains foundational across Apac, but should be strengthened with additional layers as threats become more automated, adaptive and cross-channel, he added.
“Regulators in Malaysia, Singapore, India and the Philippines are also placing greater emphasis on stronger authentication requirements.
“The business value of AI-powered fraud detection lies in scalability and integration. AI can analyse large volumes of interaction data, identify anomalous patterns and respond quickly as threats evolve.
“But the value is not in deploying AI for its own sake. It comes when AI is embedded into communication infrastructure and tied to outcomes – reducing fraud exposure, protecting delivery quality, lowering operational costs and improving customer confidence,” said Valjak.
Human expertise remains essential. While AI excels at speed, scale and pattern recognition, people are needed to set risk policies, manage exceptions and make judgement calls in high-stakes situations.
“Fraud also does not respect sector boundaries. A pattern that appears in digital banking can quickly spread to eCommerce, telecommunications or other platforms.
“This makes shared intelligence and collaboration among telecommunications companies, enterprises, regulators and technology providers increasingly important,” said Valjak.
At the network level, Apac is already making progress. For instance, PLDT Inc strengthened security across Smart’s network using Infobip’s Omnichannel Firewall, helping block more than 1.3 billion spam and fraud attempts.
Looking ahead, Valjak said the gold standard for Apac is “invisible security” – protection that operates quietly in the background through network intelligence, AI detection and orchestrated communication infrastructure.
“Security can no longer sit behind the customer experience as a separate control. Leading businesses will build trust directly into the journey, delivering speed and seamlessness while proving they are worthy of that trust.”
