Philippine ranks second in global digital fraud

MANILA, Philippines — The Philippines posted a suspected digital fraud rate of 13.4 percent in 2024, more than double the global average of 5.4 percent and the second highest among surveyed countries, according to global information solutions provider TransUnion.

In a report, TransUnion said the Philippines has now surpassed the global fraud rate for the fifth straight year.

India led with the highest digital fraud rate at 19 percent, followed by the Philippines and the Dominican Republic at 10.9 percent.

The data also pointed to an alarming rise in fraud-related incidents targeting Filipinos. Nearly three out of four Filipinos (74 percent) surveyed said they had been targeted by fraud schemes via email, online platforms, phone calls or text messages. This is higher than the 53 percent average across 18 other countries and regions.

More troubling, 34 percent of Filipinos reported losing money to such schemes compared to the global average of 29 percent.

Yogesh Daware, chief commercial officer at TransUnion Philippines, said that the average financial loss for Filipino victims stood at $768, or over P44,700, which TransUnion said equates to more than two months’ salary for many local households.

Among the industries analyzed, online communities emerged as the most fraud-prone for Philippine consumers, with a 19.2-percent suspected fraud rate. This is significantly higher than the global industry average of 11.6 percent.

“The high volume of users interacting online opens doors for fraudsters to take advantage of unsuspecting victims,” Daware said.

“Our analysis showed a growth in the number of transactions suspected to be digital fraud. This tells us fraudsters are ramping up their attacks by targeting more victims and diversifying their tactics,” it added.

The retail industry followed with a 13-percent fraud rate in the Philippines, also well above the global benchmark of 7.6 percent.

Fraudsters are also highly adaptable and constantly evolving their tactics to exploit unprepared victims.

“Almost all Filipinos we surveyed expressed concern about falling victim to fraud,” Daware said.

TransUnion’s report emphasized the need for “friction-right” fraud prevention technologies that protect consumers without compromising user experience. Businesses are urged to enhance security systems, adopt advanced analytics and build cross-sector partnerships to address the growing threat.

Consumers, meanwhile, are encouraged to remain vigilant, scrutinize suspicious messages, and regularly monitor financial accounts.