VIDA Urges Malaysian CISOs to Rethink AI-Driven Fraud Defence

2 February 2026

KUALA LUMPUR: Fraud in Southeast Asia has reached a tipping point, evolving from isolated scams into highly commercial operations run by organised syndicates that operate with the scale and efficiency of modern, legitimate businesses. This warning was issued by Niki Luhur, Founder and CEO of VIDA Group, at CISO Malaysia 2026, an event bringing together Chief Information Security Officers (CISOs) from across Malaysia.

In his presentation, titled "From Fraudster to Syndicate: The Rise of Commercial Fraud in Southeast Asia," Niki explained how Artificial Intelligence (AI) is fundamentally transforming the digital crime economy, automating and amplifying fraud into a structured, industrialised threat. “Fraud today is no longer about individuals seeking quick profits; it has become a recognised business,” said Niki Luhur. “When organised crime operates like an industry, security strategies cannot rely on assumptions suited to a different era.”

This message resonates strongly with CISOs, as AI-powered threats such as deepfake attacks and synthetic identity fraud undermine traditional security models. Furthermore, in line with Bank Negara Malaysia’s (BNM) decision to phase out SMS OTPs by June 2026, which highlights the inadequacy of legacy authentication methods, there is a pressing need for a fundamental redesign of defence strategies for banking leaders.

Niki stressed the importance of layered and coordinated identity defence. Effective fraud prevention now requires the integration of identity verification, device integrity checks, liveness detection, and Public Key Infrastructure (PKI) authentication into a cohesive system capable of withstanding large-scale AI-driven attacks. Device trust has become a crucial frontline control in this evolving landscape.