ONLINE COMMUNITIES in the Philippines had a fraud rate of 18% in the first half, significantly higher than the 11.5% global average, according to a study by TransUnion.
In its Omnichannel Fraud Report, TransUnion said that 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%.
In the first six months, the overall digital fraud rate in the Philippines across all industries was 13%, exceeding the global average of 5.2% and “much higher” than the 19 markets analyzed.
Globally, digital fraud remained “stubbornly high” in the first six months of 2024, TransUnion said.
“Of the 19 markets where we provided country and regional breakdowns, seven (Brazil, Canada, Chile, Colombia, India, Mexico, and the Philippines) saw an increased rate of suspected digital fraud year on year in H1,” according to the report.
Profile misrepresentation was the most frequent type of digital fraud in the communities segment, TransUnion said.
“Online community users rely on organizations to provide trust and safety while using their platforms,” it said. “However, communities customers of TransUnion reported profile misrepresentation as the most frequent type of digital fraud they witnessed in H1.”
Suspected digital fraud attempts were most prevalent during the account login stage, TransUnion said.
In the six months to June period, 15.4% of all attempted digital account logins were suspected to be fraudulent, accelerating from 11% rate a year earlier. The other vulnerable stages were account creation (3.7%) and the transaction proper (1.6%).
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.
Phishing refers to the practice of sending e-mails or texts while pretending to represent a reputable organization. This is meant to entice a user to share personal information, like passwords and bank account numbers.
Yogesh Daware, chief commercial officer at TransUnion Philippines, said digital scams are constantly evolving.
“The growth of communities also creates more avenues for scammers to potentially defraud consumers,” Mr. Daware said in a statement.
“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.” — Beatriz Marie D. Cruz