Fraud in Southeast Asia has reached a new level. According to VIDA, criminal syndicates now operate with the efficiency of legitimate businesses. This change forces Chief Information Security Officers (CISOs) in Malaysia to rethink their approach to digital security in the age of Artificial Intelligence (AI).
Organized Fraud Syndicates Mimic Legitimate Businesses
The rise of commercial fraud was a key topic at CISO Malaysia 2026. Niki Luhur, Founder and CEO of VIDA Group, revealed that fraudsters are no longer acting alone. Instead, they now run structured operations, using business-like methods to scale their crimes. This trend signals a shift from isolated scams to highly organized, professional crime networks, making traditional fraud prevention methods increasingly ineffective.
AI-Powered Threats Challenge Traditional Security Models
New threats powered by Artificial Intelligence, such as deepfake attacks and synthetic identity fraud, are undermining old security systems. As Malaysia’s central bank, Bank Negara Malaysia, plans to phase out SMS-based OTPs by June 2026, banks and other organizations must abandon legacy methods. This urgency highlights the need for modern, flexible defense strategies that can adapt to today’s rapidly changing threat landscape.
VIDA’s Layered Defense Approach for the AI Era
To effectively fight large-scale AI-driven threats, VIDA urges the adoption of a layered defense strategy. This involves uniting identity verification, device integrity checks, liveness detection, and PKI authentication. A multi-layer defense makes it harder for fraud syndicates to succeed. VIDA’s approach ensures that device trust becomes a frontline control in digital identity protection.
In summary, the increasing sophistication of digital fraud demands a stronger and more coordinated security response. By learning from VIDA’s strategy, Malaysian CISOs can better protect against AI-powered threats and safeguard the future of digital identity.
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