More Than One in 20 Global Digital Transactions were Suspected Fraudulent in the First Half of 2023; In the Philippines, Video Gaming is the Most Targeted Industry
Findings based on proprietary insights from TransUnion’s global intelligence network
Philippines, October 26, 2023 – As consumers and businesses continue to use digital transactions to engage in commerce, fraudsters are increasingly using them for their own benefit. A new TransUnion (NYSE: TRU) analysis finds that suspected global digital fraud is up in the first half of 20231, and while retail and video gaming were among the most targeted industries during that timeframe, digital fraud affected all businesses.
In the first half of 2023, the retail and video gaming industries saw the highest rates of suspected digital fraud globally at 10.6% and 7.0%, respectively, followed by telecommunications at 5.3%. Globally, insurance and logistics were the industries with the lowest suspected digital fraud attempt rate in H1 2023. Among all industries, the suspected digital fraud rate stood at 5.3%, up from 4.5% one year ago.2
“If left unchecked, fraud results in an erosion of trust between consumers and industries. When attempting to measure the impact of digital fraud on any one particular industry or another, it’s not enough to look at fraud rates alone,” said Yogesh Daware, chief commercial officer at TransUnion Philippines. “There are other factors that need to be taken into consideration. These include the overall size of the industry in question, whether the industry is growing and if so, how quickly. Only then can one endeavor to develop a more comprehensive perspective on how digital fraud is impacting these industries. In addition, this can help project where fraudsters may be focusing their efforts moving forward, and help industries take the necessary steps to stay ahead of any developing threats.”
When the consumer is located in the Philippines during the transaction, among all industries, the suspected digital fraud rate stood at 8.2% in H1 2023. For transactions coming from the Philippines, the video gaming industry had the highest suspected digital fraud attempt rate among all industries in H1 2023 at 15.2%. Conversely, the number of digital transactions coming from the Philippines in that industry decreased when comparing H1 2022 to H1 2023 (down 19.4% YoY). While the insurance industry saw the largest increase in digital transactions coming from the Philippines YoY at 160.3%, the suspected digital fraud rate for that industry for transactions coming from the Philippines was 7.1%.2
Insurance Saw the Greatest YoY Growth in Global Digital Transactions while Retail had the Highest Suspected Digital Fraud Rate
| Industry | Suspected digital fraud attempt rate coming from the Philippines H1 2023 | Change in number of digital transactions coming from the Philippines H1 2022 to H1 2023 | Global suspected digital fraud attempt rate H1 2023 | Change in number of global transactions H1 2022 to H1 2023 |
| Video gaming | 15.2% | -19.4% | 7.0% | -8.5% |
| Retail | 11.3% | 11.2% | 10.6% | 12.9% |
| Financial services | 8.3% | 78.5% | 4.3% | 0.9% |
| Insurance | 7.1% | 160.3% | 1.6% | 18.3% |
| Communities (online dating, forums, etc.) | 5.0% | -15.4% | 4.1% | -9.3% |
| Logistics | 4.6% | -21.3% | 0.9% | -19.4% |
| Travel & leisure | 3.1% | 34.1% | 2.3% | 16.8% |
| Telecommunications | 2.4% | -51.7% | 5.3% | -44.0% |
Source: TransUnion TruValidate™ data
71% of Filipino Consumers Report Having Been Targeted by Fraud
This new TransUnion analysis comes on the heels of its recent Q3 Philippines Consumer Pulse Study which explored, among other things, consumer awareness of being targeted by any online, email, phone call or text messaging fraud attempt in the last three months. The TransUnion survey of 1,000 Filipino adults was conducted from July 06 to 24, 2023.
The survey found that 62% of survey respondents indicated that they had been targeted by fraud but did not become a victim of it, and 9% had been targeted and fell victim. Among those targeted, the most frequent fraud schemes by which they reported being attacked were phishing (51%), followed by smishing (45%) and money/gift card scam (34%).3
TransUnion came to its digital fraud findings based on intelligence from its identity and fraud product suite, TransUnion TruValidate™, which helps secure trust across channels and delivers efficient consumer experiences. The rate or percentage of suspected digital fraud attempts reflect interactions which TransUnion customers either denied in real time due to fraudulent indicators or determined to be fraudulent after a manual review process—compared to all transactions it assessed for fraud.
Download the Omnichannel Fraud in H1 2023 Infographic for more findings including the rate of suspected digital fraud from select countries and regions globally, and the growing problem of synthetic fraud. Specific country and regional data in the analysis include the United States, Brazil, Canada, Chile, Colombia, Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, Philippines, Puerto Rico, Rwanda, South Africa, Spain, United Kingdom and Zambia.
1 The first half of the year or H1 refers to Jan 1 to June 30
2 TransUnion TruValidate data
3 TransUnion Consumer Pulse Survey
