According to the TransUnion 2024 State of Omnichannel Fraud Report, 8.3% of all digital transactions involving consumers in the Philippines were suspected of digital fraud in 2023. This rate is higher than the global average of 5%,
Globally, the volume of suspected digital fraud surged 14% year-over-year (YoY) in 2023, and 105% from 2019 to 2023. In contrast, the actual number of digital transactions increased by 6% from 2022 to 2023, and 90% from 2019 to 2023.
TransUnion, a global information and insights company operating in over 30 countries including the Philippines, identified a significant shift in fraud tactics. In the Philippines, 13.3% of account login transactions were flagged as potentially fraudulent in 2023. Account creation followed with a 3.2% suspected fraud rate. The final financial transaction stage, such as purchases and withdrawals, had a lower fraud suspicion rate of 1.2%.
“This rise in suspected digital fraud at the account login and creation stages may represent a paradigm shift among fraudsters,” said Yogesh Daware, chief commercial officer at TransUnion Philippines.
He suggested that fraudsters are increasingly creating new accounts using synthetic identities, leveraging data from breaches to gain control.
Data breaches
The report also highlighted that the retail industry had the highest suspected fraud rate in the Philippines at 11.8%, despite a decrease from 2022. Financial services saw a significant rise in suspected fraud, increasing 41% from the previous year, with a 113% surge in fraud volume despite a 51% increase in transactions.
“As fraudsters exploit credentials from data breaches, it becomes crucial for organizations to enhance protection at every touchpoint to safeguard both businesses and consumers,” Daware said.
TransUnion’s findings are based on its TruValidate suite, which assesses fraud through real-time denials, corporate policy violations, and customer investigations, ensuring secure and efficient consumer experiences.