A recent study by global analytics firm Fico reveals that approximately 1 in 3 Filipinos are increasingly worried about being scammed as the country rapidly embraces real-time payment systems.
The study, part of Fico’s latest global consumer fraud research, highlights growing apprehensions as new, fast, and convenient payment channels like Maya, GCash, and GrabPay gain widespread popularity.
The primary fear for 35% of Filipinos centers on being deceived into transferring money to fraudsters, resulting in immediate, often irretrievable financial losses. Unlike other forms of payment, these instant transactions offer little to no recourse for reimbursement, amplifying the potential risk.
The study, conducted in November 2023, surveyed 1,001 Filipino adults as part of a broader assessment involving around 12,000 consumers across several countries, including the U.S., Brazil, and India.
Identity theft remains a significant worry for 23% of the population. This type of fraud poses threats beyond immediate financial damage, potentially affecting credit scores and making the recovery of one’s financial standing a complex process.
“This rapid shift toward digital payments brings a pressing need for increased vigilance against digital fraud,”said C K Leo, Fico’s Asia Pacific lead for fraud and financial crime.
Real-time payment scams
Fico’s research reveals that 82% of Filipinos have encountered unsolicited communications they believed to be scams, while 61% know someone who has fallen victim to a scam. Alarmingly, 25% of respondents confessed to having sent real-time payments for goods or services that never materialized.
Despite these troubling figures, only 26% reported their losses to their banks. This underreporting underscores a critical gap in addressing and mitigating the impact of scams.
“Banks are in a pivotal position to invest in advanced anti-fraud technologies,” Leo said. “The irreversible nature of real-time transactions needs proactive fraud detection measures to protect consumers from financial harm.”
Identity theft
Although many Filipinos downplay the risk of identity theft, Fico’s survey points to a disconnect between perception and reality. While 33% believe it unlikely they have been victimized, and 27% feel confident their identity is secure, around 5% reported their stolen identity was used to open financial accounts. This translates to over 3 million Filipinos, emphasizing the widespread vulnerability.
To compare, this rate is higher in other regions, with 13% of Indian and 12% of Thai respondents reporting similar incidents.
When choosing financial service providers, Filipino consumers prioritize robust fraud protection and ease of use over customer service, environmental policies, and even value for money. This preference highlights a growing demand for security in financial dealings.