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Video gaming is the most targeted industry for fraudulent digital transactions in the Philippines, while more than one in 20 global digital transactions in the first half of this year were suspected fraudulent, according to an analysis conducted by TransUnion’s global intelligence network.
A new analysis by TransUnion (NYSE: TRU), a global information and insights company, finds that suspected global digital fraud went up in the first half of 2023 while retail and video gaming were among the most targeted industries during that time frame, digital fraud affected all businesses.
When the consumer is located in the Philippines during the transaction, among all industries, the suspected digital fraud rate stood at 8.2 percent in the first half of 2023, TransUnion said.
In the first half of 2023, the analysis showed that the retail and video gaming industries saw the highest rates of suspected digital fraud globally at 10.6 percent and 7.0 percent, respectively, followed by telecommunications at 5.3 percent.
Also, for transactions coming from the Philippines, the analysis stated that the video gaming industry had the highest suspected digital fraud attempt rate among all industries in the first semester of 2023 at 15.2 percent.
Conversely, the number of digital transactions coming from the Philippines in that industry decreased when comparing first half 2022 to H1 2023 (down 19.4% YoY). While the insurance industry saw the largest increase in digital transactions coming from the Philippines year on year at 160.3 percent, the suspected digital fraud rate for that industry for transactions coming from the Philippines was 7.1 percent.
Globally, insurance and logistics were the industries with the lowest suspected digital fraud attempt rate in the first semester 2023. Among all industries, the suspected digital fraud rate stood at 5.3 percent, up from 4.5 percent a year ago.
TransUnion added that as consumers and businesses continue to use digital transactions to engage in commerce, fraudsters are increasingly using them for their own benefit. A new TransUnion (NYSE: TRU) analysis finds that suspected global digital fraud is up in the first half of 20231, and while retail and video gaming were among the most targeted industries during that timeframe, digital fraud affected all businesses.
“If left unchecked, fraud results in an erosion of trust between consumers and industries. When attempting to measure the impact of digital fraud on any one particular industry or another, it’s not enough to look at fraud rates alone,” said Yogesh Daware, chief commercial officer at TransUnion Philippines.
“There are other factors that need to be taken into consideration. These include the overall size of the industry in question, whether the industry is growing and if so, how quickly. Only then can one endeavor to develop a more comprehensive perspective on how digital fraud is impacting these industries. In addition, this can help project where fraudsters may be focusing their efforts moving forward, and help industries take the necessary steps to stay ahead of any developing threats.”
This new TransUnion analysis comes on the heels of its recent Q3 Philippines Consumer Pulse Study which explored, among other things, consumer awareness of being targeted by any online, email, phone call or text messaging fraud attempt in the last three months. The TransUnion survey of 1,000 Filipino adults was conducted from July 06 to 24, 2023.
The survey found that 62 percent of survey respondents indicated that they had been targeted by fraud but did not become a victim of it, and nine percent had been targeted and fell victim. Among those targeted, the most frequent fraud schemes by which they reported being attacked were phishing (51%), followed by smishing (45%) and money/gift card scam (34%).
TransUnion came to its digital fraud findings based on intelligence from its identity and fraud product suite, TransUnion TruValidate™, which helps secure trust across channels and delivers efficient consumer experiences. 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.
— Bernie Cahiles-Magkilat
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