Fraud is flexible; it innovates and adapts to changing conditions with remarkable speed and troublesome agility. Over the past three years, the pace of change in online commerce has fueled a rising awareness of its digital dangers. While that recognition is helpful — as the latest global fraud research from TransUnion shows — we must remain vigilant to stay on top of and even pull ahead of threats.
Top-line figures from the report show in Q1 2022, the suspected digital fraud rate originating from the Philippines fell by -16.4% from the same quarter last year. This is consistent with the global trend showing a drop of -22.6% for the same quarter year-over-year (YoY). Other key industries for Filipinos, including gaming, financial services and retail, also registered suspected fraud rate drops of -27.6%, -24.5% and -23.2%, respectively.
Suspected Digital Fraud Attempts Shift to New Industries
- Fraud rate change Q1–Q1 2022
|Industry||The Philippines||Across the globe|
|Travel & Leisure||+17.0%||+13.3%|
|Communities (online dating, forums, etc.)||+4.6%||-6.1%|
The logistics industry was a real outlier having exhibited the most remarkable YoY growth among all sectors in Q1 2022; a significant 104.5% which deserves particular attention. This growth was mainly linked to shipping — whereby a buyer fakes a delivery address, or a seller receives payment for goods or services they never send.
According to the TransUnion Consumer Pulse Survey conducted in February, of the over 1,000 Filipino adults polled, 53% said they were targeted by fraudsters in the previous 3 months (up 3% on the previous quarter). Phishing scams led the way (42%), followed by money and gift card scams (38%) and third-party seller scams on legitimate online retail sites (30%).
Insights in action
These latest figures help Philippine lenders and businesses understand where digital fraud is and isn’t coming from; which industries fraudsters are and aren’t targeting; and what types of fraud are currently most prevalent. This information and these insights can inform strategies and approaches to better safeguard business operations and protect the personal data of Filipino consumers.
The fight continues
While some businesses have helped constrain fraud by introducing or upgrading controls, fraudsters will continually search for — and discover — new vulnerabilities. With more and more Filipinos transacting online in the increasingly digital economy, business organizations must continue to make the most of the latest data-driven, automated, fraud-fighting solutions available.
Contact your TransUnion representative to learn how we can specifically help you and your customers transact with increased, mutual confidence.