AFA representatives from Korea, Malaysia, Hong Kong, Cambodia, and Taiwan engaged in a hybrid panel discussions on the current state of fraud in Asia and anti-fraud strategies at FinTechOn 2024.
Over 40% of Asians encounter scams monthly, with Hong Kong and Thailand encountering the scams most frequently, exposing 90% of their citizens to various frauds once per month or more, according to the Asian Scam Report 2024 published by the Global Anti-Scam Alliance (GASA).
Identity theft, investment fraud, and online platform scams are among the most common threats, bearing the brunt of a $688 billion scam burden in 2024 alone.
“Virtual asset regulation and fraud prevention require public-private collaboration and international cooperation,” said the chairman of Jin-Lung Peng, Taiwan’s Financial Supervisory Commission (FSC). “AFA and international platforms like FinTechOn facilitate partnerships and exchanges among countries to address the most pressing FinTech challenges.”
Accordingly, scammers constantly evolve their techniques and utilize new technologies such as AI and blockchain. Additionally, illicit funds are moving across borders. A robust cross-border joint defense network is essential to intercept these funds effectively and combat fraud.
FinTech associations from 14 Asian economies signed MOU to enhance collaborations in anti-fraud on 4 Nov at FinTechOn 2024, an annual forum hosted by Taiwan FinTech Association (TFTA).
Taiwan’s FinTechOn 2024 forum took place on November 4th, and the Asia FinTech Alliance (AFA) made its debut at FinTechOn this year. Representatives of FinTech associations from 14 Asian economies signed a memorandum of understanding (MOU) on anti-fraud collaboration.
The goals include raising public awareness of FinTech-related fraud, establishing channels for sharing information and insights on anti-fraud, developing and promoting best practices, and creating a unified cross-border approach to handle reported fraud incidents internationally.
“Taiwan has completed amendments to four anti-fraud laws and the Money Laundering Control Act to enhance its regulatory framework. To build public trust in the virtual asset industry and bolster industry confidence, it is essential to foster smooth dialogue between the government and industry stakeholders,” said Shih-Chieh Huang, Deputy Minister of Taiwan’s Ministry of Justice, who expressed strong support for AFA’s anti-fraud initiative.
AFA was formally launched last year and recently marked its first anniversary. Jalcyn Tsai, Honorary Chairwoman of Taiwan FinTech Association (TFTA), serves as the founding Chairperson of AFA, which comprises association members from 14 Asian economies, including TFTA, Korea FinTech Industry Association (KORFIN), Elevandi Japan, Philippines’ Fintech Alliance.Ph, FinTech Association of Malaysia (FAOM), Thai FinTech Association (TFA), FinTech Association of Hong Kong (FTAHK), Singapore FinTech Association (SFA), Fintech Indonesia, Mongolian Fintech Association (MFA), Cambodia Association of Finance and Technology (CAFT), FinTech Alliance Nepal, Vietnam Fintech Club, and India’s Fintech Convergence Council (FCC).
“International cooperation, tracking and eliminating the source, and law enforcement via technologies are key priorities in combating fraud,” stated Tou-Hui Chang, Chief Prosecutor of Taiwan High Prosecutors Office. “It’s challenging to combat cross-border fraud as the operation centers of illicit actors are always set overseas. With this backdrop, it’s critical to build international cooperations, including mutual legal assistance and coordination among law enforcement, police, and the private sector, such as partnerships between virtual asset exchanges across different countries.”
Regulation and anti-fraud are the two major topics in the FinTechOn forum this year. FinTechOn is Taiwan’s most authoritative FinTech policy discussion platform. AFA’s participation in this forum underscores Taiwan’s leading role in Asia’s FinTech regulatory harmonization.