THE Philippines posted a suspected digital fraud rate of 8.2 percent in the first half of 2023, a US consumer credit reporting firm said, with video gaming and retail transactions particularly targeted.
In a statement on Friday, TransUnion said the video gaming industry posted the highest suspected digital fraud rate of 15.2 percent for the period among all industries, followed by retail at 11.2 percent.
No comparative figures were given but TransUnion noted that the rate for video gaming came amid a 19.4-percent drop in transactions from the Philippines.
Retail, meanwhile, saw an 11.2-percent increase in transactions for the six-month period.
Financial services and insurance posted suspected digital fraud rates of 8.3 percent and 7.1 percent, respectively, which compared with substantial transaction increases of 78.5 percent for the former and 160.3 percent for the latter.
The communities (online dating, forums, etc.), logistics, travel and leisure, and telecommunications sectors rounded out the list with suspected fraud rates of 5.0 percent, 4.6 percent, 3.1 percent and 2.4 percent, respectively.
The Philippines’ overall suspected digital fraud rate was higher than the global figure of 5.3 percent as well those for worldwide video gaming (10.6 percent) and retail (7.0 percent).
“As consumers and businesses continue to use transactions to engage in commerce, fraudsters are increasingly using them for their own benefit,” TransUnion said in a statement.
It noted that the results followed a Philippine consumer pulse study in July where 62 percent of respondents said they had been targeted by fraud but had not fallen victim.
Nine percent, meanwhile, said they had fallen for fraud schemes, the most prevalent of which were phishing (51 percent), smishing (45 percent) and money/gift card scams (34 percent).
TransUnion’s digital fraud rate figures were based on an analysis of data from its TruValidate product offerings.
“The rate or percentage of suspected digital fraud attempts reflect interactions which TransUnion customers either denied in real time due to fraudulent indicators or determined to be fraudulent after a manual review process — compared to all transactions it assessed for fraud,” the company said.
