Online fraud incidents in e-commerce and retail industries in the Philippines have declined during the holiday season shopping this year as compared to last year, according to TransUnion, a global information and insights firm.
TransUnion’s report said the global percentage of suspected fraudulent e-commerce transactions is 3.74 percent higher than the same five-day period leading up to cyber Monday last year.
For transactions originating from the Philippines, the percentage decreased by 48.79 percent to 2.49 percent this year versus 4.86 percent last year.
These findings are based on intelligence from billions of transactions and more than 40,000 websites and apps contained within TransUnion’s flagship identity proofing, risk-based authentication, and fraud analytics solution suite, TruValidate.
The decline of suspected digital fraud during the traditionally busiest days of the holiday shopping season occurred as consumers expressed concern about being victimized.
TransUnion’s fourth quarter 2021 Consumer Pulse study found that 95 percent of Filipino consumers are concerned with falling victim to online fraud this holiday season.
“With an exponential rise in digital transactions in the Philippines during pandemic times, concerns related to online fraud continue to be top of mind for businesses and consumers alike. Despite a fall in suspected fraudulent e-commerce attempts from the Philippines during this last year, it is important everyone remains vigilant,”Pia Arellano, TransUnion Philippines president and chief executive officer, said in a statement.
“As a business, TransUnion works hard to protect Filipinos from global fraud by developing advanced solutions that businesses can implement to combat the evolving online fraud landscape while still allowing legitimate transactions. We understand that ensuring each person can be reliably represented is key to making trust possible between businesses and consumers,” added Arellano.
TransUnion monitors digital fraud attempts reported by businesses in varied industries such as gambling, gaming, financial services, healthcare, insurance, retail and travel and leisure, among others.
TransUnion earlier said that digital fraud attempts on consumer and businesses in the Philippines have significantly increased during the coronavirus disease 2019 (COVID-19) pandemic as compared to pre-pandemic levels.
TransUnion’s research showed 44 percent of Philippine consumers had been targeted by digital fraud related to COVID-19.
Gen Z — consumers with ages 19 to 26 years (born 1995-2002) — is the most targeted out of any generation at 48 percent, followed by the Millennials — ages 27 to 41 years (born 1980-1994) — at 42 percent.
Consumers in the Philippines reported the top pandemic-themed scam is phishing with 40 percent.
The TransUnion study also showed digital fraud attempts against businesses rose 31 percent from the pre-pandemic levels.
TransUnion said its conclusions about fraud against businesses are based on intelligence from billions of transactions and more than 40,000 websites and apps contained in its flagship identity proofing, risk-based authentication and fraud analytics solution suite.
Although credit card fraud is not unusual for any retailer, fraudsters are now looking for ways to monetize their efforts and are using fraudulent credit cards to purchase high-end phones and then sell them on the black market.
“Fraud can have a potentially disastrous impact on a business’ and a consumer’s finances.
In our increasingly digital economy, being able to spot fraudulent transactions whilst still providing genuine consumers with a great experience is a balancing act that organizations need to solve. By using the latest solutions, businesses can build trusted relationships and transact with confidence knowing they are safeguarding both themselves and the consumers they serve,” said Arellano. – Myla Iglesias
