Mastercard and GASA Reveal Philippines Scam Losses Hit ₱121.8 Billion in New 2026 Report

The Philippines is facing a critical surge in digital fraud, with 84% of adults reporting scam encounters in the last year. For fintech professionals, this shift highlights a massive migration of illicit activity from traditional bank transfers to digital wallets, necessitating urgent cross-industry intelligence sharing and the implementation of more robust cybersecurity frameworks to maintain consumer trust.

What was announced

The State of Scams Philippines 2026 Report, a collaborative study by the Global Anti-Scam Alliance (GASA), Mastercard, and Gogolook, has revealed a significant escalation in the frequency and impact of digital fraud within the country. Based on a survey of 1,160 Filipino adults, the data shows that 84% of the population encountered at least one scam attempt in the past year, a notable increase from 77% in 2025. On average, a Filipino adult now faces 151 scam attempts annually.

The financial impact of these activities is substantial, with 15% of respondents reporting the loss of money or personal data. Victims lost an average of ₱10,427, contributing to an estimated ₱121.8 billion in total annual losses across the Philippines. A primary takeaway for the financial sector is the shifting landscape of illicit fund movement. While bank account transfers used by scammers dropped sharply from 36% in 2025 to just 12% in 2026, digital wallets saw a massive spike in abuse. Reported scam activity involving digital wallets rose from 34% to 73% over the same period.

The report attributes the decline in bank-related fraud to the implementation of the AFASA framework and nationwide mule-account intelligence initiatives, including Mastercard TRACE. To combat the rising threat to digital wallets, the report advocates for the establishment of a National Anti-Scam Hub (NASH) to facilitate faster intelligence sharing and cross-agency coordination between the public and private sectors.

"As the Philippines continues its digital transformation, trust must remain at the heart of how we build and grow the digital economy. Scams represent a key undermining force to Philippines’s digital transformation ambitions and must be addressed. It is about creating an environment where Filipinos can confidently embrace digital payments, commerce and services. No single organization can address this challenge alone. By bringing together the strengths of the public and private sectors, sharing intelligence and investing in smarter technologies, we can help build a more secure and inclusive digital ecosystem where innovation can thrive."

Jason Crasto, Country Manager, Philippines, Mastercard

The companies involved

Mastercard is a global leader in the payments industry, providing the infrastructure and technology that connects consumers, financial institutions, and merchants across more than 210 countries and territories. In the Philippines, the company has taken a proactive role in securing the digital economy through initiatives like TRACE, which focuses on identifying and neutralizing mule-account networks used by criminal organizations.

The Global Anti-Scam Alliance (GASA) is an international organization dedicated to protecting consumers worldwide from scams. It serves as a collaborative platform for governments, law enforcement, and private sector companies to share data and develop unified strategies against fraud. Brian D. Hanley serves as the APAC Director for GASA, overseeing the organization's efforts in the region.

Gogolook is a developer of anti-fraud technologies, most notably the Whoscall app, which provides caller identification and scam detection services. Mel Migriño is the Country Head and General Manager of Gogolook Philippines. The company focuses on providing accessible anti-scam tools for both individual mobile users and enterprises, aiming to protect brand credibility and consumer communications from impersonation attempts.

What FF News has reported before

Mastercard’s commitment to the Asia-Pacific region and global payment security has been a frequent subject of coverage. We recently reported on how WEX and Mastercard Launch Asia-Pacific's First Unified Fleet Payments Network, demonstrating the company's focus on regional infrastructure. In other markets, the company has expanded its corporate offerings, such as when United Arab Bank and Mastercard Launch New Corporate Credit Card Suite in UAE.

The company also continues to invest in its underlying technology hubs to support these initiatives, as seen when Mastercard Expands Dublin Tech Hub to Power Next-Gen European Payments. Additionally, its work in the prepaid sector was highlighted when Bede Bahrain Launches Multi-Currency World Prepaid Card with SINNAD and Mastercard.

What this means

The dramatic migration of scam activity from traditional banking to digital wallets—now accounting for 73% of reported abuse—places the Philippines' fintech sector at a crossroads. While the success of bank-level interventions like AFASA proves that coordinated intelligence can deter criminals, it has also created a "balloon effect," pushing fraud into less regulated or more friction-free digital payment channels. Digital wallet providers are now under intense pressure to implement more sophisticated, real-time monitoring without compromising the user experience that drove their initial adoption. The ₱121.8 billion in annual losses suggests that if trust is not restored, the pace of the country's digital transformation could stall as consumers revert to cash to avoid sophisticated digital traps.