Retail most targeted sector for digital fraud in Philippines

MANILA, Philippines — The retail sector is the most targeted industry for fraudulent digital transactions in the Philippines last year, according to an analysis conducted by global information and insights company TransUnion.

In a report,  TransUnion  said the retail sector had a suspected digital fraud rate of 11.8 percent last year, the highest among industries being tracked.

While the figure was down 18 percent from 2022, it was above the global suspected digital fraud rate of 8.7 percent for the sector.

Financial services placed second with a suspected digital fraud rate of 10 percent in 2023, up 41 percent year-on-year.

As for communities, which cover online dating and forums, the suspected digital fraud rate was at 5.2 percent, nine percent higher year-on-year.

TransUnion also found that the suspected digital fraud rate for transactions in the country was at 8.3 percent in 2023, higher than the global average of five percent.

Other findings indicate a shift in tactics being used by fraudsters through the attempt to engage with potential victims at an earlier stage in the consumer journey.

The company found that 13.3 percent of transactions associated with account logins were suspected to be digital fraud last year.

TransUnion Philippines chief commercial officer Yogesh Daware said the findings show how crucial it is for organizations across industries to be more proactive in enhancing protection throughout the entire customer lifecycle.