REUTERS

By Jan Sysmans

ON AVERAGE, Filipinos use 11 mobile applications per day — one of the highest rates in Southeast Asia. Smartphones have become central to everyday life as the nation undergoes a mobile-first digital transformation.

Over half or 54.7% of mobile phone users in the Philippines prefer apps over websites for digital tasks, while 61.6% rely on e-wallets for payments, according to Appdome’s 2024 Philippine Mobile Consumer Survey. This growing reliance on smartphones aligns with the country’s Digital Transformation Roadmap, which aims to expand digital access and public services nationwide.

With increased usage, of course, comes increased risk. As mobile use pervades both urban and rural regions, the risk of digital fraud grows proportionally. In 2024 alone, the Philippines recorded P409 million in losses to online fraud — largely due to phishing, account takeovers (ATOs), and credential stuffing attacks. These threats underline the urgency for modern, context-aware security controls that extend beyond traditional methods.

One strategy is geofencing, a location-based security mechanism that uses geographic boundaries to implement access controls, detect anomalies, and deter fraud. As it is commonly associated with marketing or logistics, geofencing’s use in mobile cybersecurity remains under-leveraged. When implemented correctly, geofencing can be used to fortify mobile app security in the Philippines.

THE ESCALATING CYBERTHREAT LANDSCAPE
Cybercrime in the Philippines is rising at a staggering rate. Cybercrime complaints surged by 71.9% in the first quarter of 2025 compared to the same period the previous year, jumping from 1,891 to 3,251 cases, according to the Cybercrime Investigation and Coordinating Center (CICC). This increase underscores how cybercriminals are evolving faster than conventional security models can keep pace with.

Financial institutions are a popular target. According to the Bangko Sentral ng Pilipinas (BSP), supervised institutions reported losses of P5.82 billion due to cyber incidents in 2024, up from P5.67 billion in 2023. Most of these were due to phishing, card-not-present fraud, and ATOs. In addition to financial repercussions, these cyber incidents also undermine consumer trust and confidence in digital systems.

Cyberattackers increasingly utilize virtual private networks and proxies to mask their geographic location and bypass regional security controls. This allows attackers to impersonate legitimate users, create fake accounts, and exploit Know Your Customer (KYC) processes. By hiding their true location, threat actors can attack with minimal resistance, particularly on mobile platforms that lack native geographic data.

This is where geofencing offers a clear advantage: it introduces geographic intelligence into mobile security so that organizations can take actions based on data about real-world locations and user behavior.

WHAT IS GEOFENCING?
By using a device’s GPS, Wi-Fi, cellular data, or IP address, geofencing establishes virtual geographic boundaries. An app with geofencing can instantly initiate certain security procedures when a device enters or exits designated zones. With this method, businesses can implement location-based, dynamic controls, like requiring step-up authentication for sensitive transactions, blocking access from high-risk areas, or flagging suspicious activity.

By adding a behavioral component to mobile security threat detection that other methods don’t, geofencing enables apps to recognize when a user logs in from geographically disparate locations or tries to conceal their location by using anonymization tools. As a result, apps can distinguish between trustworthy users and possible scammers, decreasing false positives and improving detection accuracy.

THE SECURITY CHALLENGES GEOFENCING SOLVES
Geofencing addresses some of the biggest mobile security threats today, including ATOs, location spoofing, credential stuffing, and fraudulent transactions. By verifying that user behavior aligns with expected geographic norms, it can provide more robust security. This is especially useful for high-risk uses like onboarding, KYC or high-value financial transactions.

It also eases compliance efforts by implementing location-based controls in line with regional regulations and data privacy laws. For businesses operating across multiple jurisdictions, this can help streamline and simplify governance efforts.

Geofencing is especially effective because it is able to enhance security without adding friction for users. Unlike cloud-dependent security systems, geofencing decisions are enforced directly on the app. It doesn’t need a constant network connection, external application programming interfaces (APIs), or third-party infrastructure to do its job. This results in near-zero latency, maintains protection in low-connectivity environments, and ensures frictionless operation with no throttling or service disruptions. For mobile-first users, frictionless security is paramount.

THE ROUTE TO HIGHER SECURITY WITH GEOFENCING
As cyberattacks become more frequent and sophisticated, particularly in mobile-driven economies like the Philippines, so should cyber defenses. Traditional methods are becoming increasingly ineffective against modern tactics like location spoofing and credential-based attacks.

Geofencing adds a powerful yet low-friction layer of security to mobile apps by integrating real-time, location-based intelligence. Organizations are therefore empowered to proactively prevent fraud, protect users, and maintain compliance without compromising performance or experience. As the Philippines grows into its mobile-first era, intelligent embedded solutions like geofencing will be critical in securing trust, integrity, and resilience among the nation’s mobile users.

 

Jan Sysmans is a mobile app security evangelist at Appdome.

RELATED ARTICLESMORE FROM AUTHOR