The Rising Threat of Scams and Mule Accounts in Asia Pacific
Scams and mule accounts have emerged as the primary threat to banks across the Asia Pacific region, according to a recent survey by FICO, a global leader in credit data analytics. The findings reveal that 69% of senior banking executives consider these forms of criminal activity their biggest concern, highlighting the increasing sophistication and impact of scam operations.
Unlike traditional fraud, which often involves unauthorized transactions that can be detected and blocked by banks, scams are more challenging to combat. These schemes typically rely on victims willingly authorizing payments, making it difficult for banks to intervene. Once the money is transferred, criminals use mule accounts to move funds quickly across institutions and borders, significantly complicating recovery efforts.
The financial ecosystem is witnessing a surge in scam-related losses, with several countries reporting record-breaking figures. In 2024 alone, Singapore reported over S$860 million in scam losses, marking a 70% increase from the previous year. Thailand experienced damages amounting to 60 billion baht, while Malaysia's losses were estimated at 54 billion ringgit (US$12.8 billion), nearly 3% of its GDP. Similar trends have been observed in the Philippines and Indonesia, where scam-related activities now dominate cybercrime reports.
Social Media as a Primary Threat Vector
Social media platforms have become a critical channel for scammers to target victims and recruit money mules. According to the survey, 52% of banking leaders identified social media as the top external threat vector for scams, followed by messaging apps at 35%. With over 2 billion social media users in the region, platforms like Facebook, TikTok, and Telegram are frequently exploited by criminal syndicates.
These platforms are used to impersonate officials, promote fake investments, or advertise fraudulent job opportunities. Many victims are deceived into believing these schemes are legitimate, while others are lured into "renting out" their accounts for quick cash without realizing they are facilitating financial crimes.
In response to the growing threat, regulatory actions have been taken in some countries. For example, Thailand shut down over 200,000 mule accounts in a single year, while Singapore introduced legislation that criminalizes the supply of mule accounts and empowers banks and authorities to act in real-time.
Challenges Faced by Banks
Despite these measures, banks continue to face internal challenges that hinder their ability to detect and respond to scams effectively. The most common issue cited was siloed data, with 46% of respondents indicating this as a major obstacle. Additionally, 28% highlighted the lack of connected insights across products and channels, while 13% pointed to limited real-time integration with third-party systems.
Dattu Kompella, managing director of Asia Pacific for FICO, emphasized the need for banks to adopt connected systems that provide a complete, real-time view of risk. He noted that scam activity is fast, fluid, and fragmented, requiring banks to break down internal silos and unify insights across teams to stay ahead of evolving threats.
Reimbursing Scam Victims: A Complex Issue
The survey also explored bank leaders' perspectives on reimbursing scam victims. Only 14% of respondents supported full reimbursement in all scam cases, while half believed compensation should only apply when the bank is at fault. Another 36% advocated for a shared responsibility model between banks and customers.
FICO conducted the survey during its Asia Pacific Fraud Forum in June 2025, gathering insights from over 40 fraud and risk executives across the region. The findings underscore the urgent need for collaboration, innovation, and stronger regulatory frameworks to combat the rising tide of scams and mule account activities.