Digital fraud is on the rise worldwide. In the Philippines, the video gaming industry is the most targeted.
Global insights firm TransUnion recently released an analysis of suspected global digital fraud in the first half of 2023. From the findings, the retail and video gaming sectors are revealed to have faced the most challenges, with suspected global fraud rates at 10.6 percent and 7 percent, respectively. On the other hand, the insurance (1.6%) and logistics (0.9%) industries saw the lowest rates.
With all industries combined, the TransUnion analysis shows the suspected digital fraud rate at 5.3 percent globally, up from 4.5 percent from the previous year.
In transactions involving Philippine-based consumers, the overall suspected digital fraud rate reached 8.2 percent among all industries in H1 2023. The video gaming industry, in particular, recorded a high rate at 15.2 percent for transactions originating from the country. In terms of the number of transactions, the industry saw a decline by 19.4 percent year-on-year. Conversely, the country’s insurance sector witnessed a substantial 160.3-percent growth in digital transactions, but with a suspected digital fraud rate of 7.1 percent.
Yogesh Daware, chief commercial officer at TransUnion Philippines, stressed the importance of looking beyond the fraud rates to understand the impact on industries. He said that a comprehensive perspective requires consideration of the size of the industry, its growth rate, and other factors.
A recent TransUnion survey from April to July 2023 showed that 62% of Filipinos were targeted but not deceived by various fraud methods, 29% weren’t targeted, and 9% became victims.