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Celebrating Without Being Complacent

TransUnion
Blog Post08/24/2021
Business
Celebrating Without Being Complacent

The current cost of cybercrime globally sits at around $6 trillion, and its estimated increase of 15% per year could take it to $10.5 trillion by 2025.[1] These are alarming figures for anyone in business, but there are signs that — at least in the Philippines — specific sectors are bucking the trend. This article shows where we’re winning, where we need to be cautious, and why we need to remain vigilant.

The significant victories

First, the good news. As the rate of suspected digital fraud attempts across industries rose 16.5% globally, the Philippines went in the opposite direction — achieving a massive 59.4% drop2 when comparing Q2 2021 to Q2 2020.

The industries contributing the most significant declines were telecommunications (-98.7%), logistics (-71.1%), and financial services (-61.3%). These have been the most affected in previous periods, illustrating how fraudsters shift their focus every few months to areas where it’s most profitable.

Celebration without complacency

It’s possible fraudsters have recognized and been repelled by the fraud controls our customers have put in place and looked elsewhere for easier prey. If this is the case, we mustn’t let celebration turn into complacency. As we continue developing and evolving our data-driven solutions, we encourage our customers in telecommunications, logistics and financial services to remain vigilant.

Industry

Suspected Fraud Percentage Change

Top Type of Fraud

Largest percentage increases

Travel & Leisure

198.5%

Credit card fraud

Communities (online dating, forums, etc.)

163.8%

Profile misrepresentation

Gaming

51.4%

Gold farming

Largest percentage declines

Telecommunications

-98.7%

True identity theft

Logistics

-71.1%

Shipping fraud

Financial services

-61.3%

True identity theft

Industry year-over-year suspected digital fraud attempt rates coming from the Philippines in Q2 2021

The unfailing fluidity of fraud

The Philippines experienced an uplift in attacks in specific sectors, including gaming, and travel and leisure where the suspected digital fraud attempt rate rose 51.4% and 198.5%, respectively when comparing Q2 2021 to Q2 2020. These trends may indicate fraudsters are refocussing activities on areas with high volumes of financial fluidity where anti-fraud measures are perhaps not as robust.

The ongoing COVID-19 factor

TransUnion’s June 2021 Consumer Pulse study3 found almost half (48%) of Philippine respondents said they were targeted by fraudsters in COVID-19-related digital schemes. Phishing was the leading COVID-19-related digital fraud impacting Filipino consumers in Q2 2021 at 40%, followed by third-party seller scams on legitimate online retail websites at 29%.

Defending for growth

As the Delta variant continues to fan the flames of the pandemic, businesses are under increasing pressure to ensure their customers can confidently transact with them. Because we recognize the need for commercial growth, TransUnion TruValidate™ solution helps avoid shopping cart abandonment by combining consumer confidence with friction-right experiences.

To learn more about our flagship identity proofing, risk-based authentication and fraud analytics solution suite, click here, and to explore TransUnion’s quarterly digital fraud analysis.

1 Cybercrime to Cost the World $10.5 Trillion Annually by 2025
2 The percent or rate of suspected or risky, fraudulent digital transaction attempts are based on those that TransUnion customers receiving TruValidate services have either denied or reviewed due to fraudulent indicators compared to all transactions it assessed for fraud.
3 TransUnion’s Consumer Pulse study is a survey of adults in the Philippines and abroad regularly conducted to better understand the financial impact of COVID-19 on consumers.

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