Alarming Digital Fraud Rates in PH reported

TransUnion found that 15.0% of all attempted ecommerce transactions on Black Friday, November 29, 2024 where the consumer was in the Philippines during the time of transaction, were suspected to be Digital Fraud. It was the highest suspected retail Digital Fraud rate in the Philippines out of all the days in the 2024 holiday shopping weekend – a five-day period that spanned from November 28, the Thursday before Black Friday, to December 2, 2024, Cyber Monday. 

As most private sector employees in the Philippines are salaried under a bi-monthly pay cycle, many Filipino consumers received their salaries within the 2024 holiday shopping weekend on November 29. It is also possible for most consumers to have received their 13^th month pay and any other Christmas bonuses they may be eligible for around this time of the year as well. With consumers eager to spend their bonuses on good deals online to purchase gifts, the period presents a prime opportunity for fraudsters to take advantage of unsuspecting shoppers.  

Retail Digital Fraud rates in the Philippines remain higher than global levels

Beyond Black Friday, for all attempted ecommerce transactions where the consumer was in the Philippines, 13.6% were suspected of Digital Fraud during the 2024 holiday shopping weekend – down from 14.3% in the same period from the Thursday before Black Friday to Cyber Monday 2023. These numbers continue a gradual decline in suspected Digital Fraud rates during the holiday shopping weekend over the past three years. 

However, despite decreasing numbers within the country, the suspected retail Digital Fraud rate during the holiday shopping weekend in the Philippines is alarmingly 196% higher than the global rate of 4.6% – which dropped from 6.0 last year. A much higher suspected Digital Fraud rate than global one was observed across every day of this year’s holiday shopping weekend for attempted ecommerce transactions where the consumer was in the Philippines. 

Higher Suspected Retail Digital Fraud Rates in the Philippines Compared to Globally During the Holiday Shopping Weekend

Source: TransUnion TruValidate™

In addition to the Philippines seeing a higher suspected retail Digital Fraud rate compared to the global rate during the holiday shopping weekend, its speed of decline also lagged behind. TransUnion observed a 5% decrease in the rate of suspected retail Digital Fraud during the holiday shopping weekend in the Philippines between 2023 and 2024. This is notably lower than the global decline rate of 23% during the same period. 

Beyond this year’s holiday shopping weekend, for the days in 2024 up to that period (January 1 to November 27, 2024), the Philippines continued to show higher suspected retail Digital Fraud rates than globally. Compared to the global non-holiday suspected retail Digital Fraud rate of 7.5%, findings show that 12.3% of all non-holiday attempted retail transactions when the consumer was in the Philippines were suspected to be Digital Fraud.

The Percentage of Suspected Ecommerce Fraud during the Holiday Shopping Weekend vs. Overall

Source: TransUnion TruValidate™

“We are encouraged to see a gradual decline in Digital Fraud rates within the Philippines market. However, these rates still significantly exceed the global rate, which underscores the need for continued efforts from both public and private sectors to further address the prevalence of Digital Fraud in the country. With the increase in suspected fraudulent activities observed during the holiday shopping weekend, it is imperative for both businesses and consumers alike to remain vigilant as we navigate this busy festive season,” said Yogesh Daware, chief commercial officer of TransUnion Philippines.

Filipino shoppers are most concerned about Digital Fraud among countries and regions analyzed

TransUnion’s Q4 2024 Consumer Pulse Study found that 91% of survey respondents in the Philippines expressed being extremely, very or moderately concerned about digital fraud during this busy shopping season. This percentage is the highest among the countries and regions TransUnion surveyed in the study. 

“Our study findings indicate that Filipinos exhibit the highest awareness levels towards holiday digital fraud. Additionally, insights from the latest Consumer Pulse Study revealed a more proactive attitude among Filipino consumers in protecting themselves. An increasing number of Filipinos are regularly checking their credit reports and monitoring their accounts for unauthorized activities. While consumers are taking these steps to safeguard themselves against fraud, it is crucial for businesses to implement holistic fraud solutions to ensure consumer safety and maintain business integrity, especially during the holiday shopping season and beyond,” added Daware.  

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflect those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation or 4) a corporate policy violation upon customer investigation – compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide.