PHILIPPINES DIGITAL FRAUD RATE EXCEEDS GLOBAL AVERAGE

Online communities in the Philippines had a fraud rate of 18% in the first half which is higher than the global average (Photo courtesy of Reuters/Business World)

According to a credit reference company, the country continues to grapple with elevated rates of digital fraud with 18% in the first half, with suspicious transactions from the country exceeding global averages.

State of Omnichannel Fraud Report, TransUnion said that Philippines’s fraud rate was significantly higher than the 11.5% global average which is 5.3%. The fraud rate covers segments like online forums and dating sites.

The corresponding fraud rates for other industry segments were as follows: retail 12.7%, financial services 6.6%, logistics 5.7%, the public sector 4.6%, travel and leisure 0.9%, and telecommunications 0.8%.

This was the highest percentage among 19 countries surveyed, representing a 35 percent increase from last year. Globally, digital fraud remained “stubbornly high” in the first six months of 2024 according to TransUnion.

Profile misrepresentation was the most frequent type of digital fraud in the community’s segment. Cyber fraud refers to malicious activities launched online to trick users into revealing their personal information, which the criminals can use for financial gain.

According to the report, phishing was the most reported fraud scheme in the Philippines, with 60% of consumers saying they were targeted but did not fall victim. It also noted that 30% were not targeted, and 10% were targeted and fell victim.

Other common methods included smishing or sending fake text messages, money and gift card scams, third-party seller scams on legitimate e-commerce sites, vishing or voice phishing, identity theft, money mule, and account takeover.

“With rising community fraud rates in the Philippines aligning with global findings, there is a need to focus efforts on educating consumers about these types of attacks and disseminating preventive measures that consumers and businesses can take to protect themselves from falling victim,” TransUnion said in a statement. 

Source: The Manila Times 

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