Identity fraud is growing in the Philippines in the face of increased adoption to digital platforms, according to Unisys.
Unisys cited a study by LexisNexis Risk Solutions on True Cost of Fraud Study for Philippineswhich found that for every fraudulent transaction, the cost to businesses is actually 3.46 times the amount of the lost transaction value.
This translates to fraud costs amounting to 2.03 percent of annual revenues overall, the study said.
According to Unisys, most of this type of fraud is due to poor authentication processes in business transactions.
The study noted the number of cybercrime cases in the Philippines reportedly increased by nearly 80 percent in 2019 over the previous year saying the improving telecommunications infrastructure is driving the growth of mobile and digital transactions.
Other factors identified by the study that contribute to the increase of fraud in the Philippines are: the rapid rise of e-commerce and m-commerce; sizeable underbanked population and the prevalence of alternative payment methods and; expansion and frequency of cyberattacks
The study said businesses are facing common challenges towards in warding off fraud.
These include: verification of customer identity; dif; differentiating between legitimate transactions and bot activity; inability to determine source/origination of transaction and; address verification.