Amid pandemic, digital fraud rising in the Philippines

According to the Global Consumer Pulse study of global information and insights company TransUnion, increasing digital fraud attempts against businesses and consumers in the Philippines continues to rapidly occur amidst the ongoing Covid-19 pandemic.

The study was based on intelligence from billions of transactions and over 40,000 websites and apps from TransUnion TruvalidateTM, a flagship identity proofing, risk-based authentication, and fraud analytics solution suite.

44% of Philippine-based consumers have been targeted by digital fraud in the last three months according to its Global Consumer Pulse study.

The top three areas with the highest share of suspected fraudulent digital transactions were Salcedo in Eastern Samar, Makati City, and Manila.

Online fraud attempts were mostly targeted to those born between 1995 and 2002, at 48%; followed by those born between 1980 and 1994, at 42%

“Fraudsters are always looking to take advantage of significant world events. The Covid-19 pandemic and its corresponding rapid digital acceleration brought about by stay-at-home orders is a global event unrivaled in the online age,” TransUnion Philippines president and chief executive officer Pia Arellano said in a statement Wednesday, March 24.

In terms of digital fraud attempts against enterprises, TransUnion has seen a 31% increase in attacks this year from pre-pandemic levels in March 11, 2019 to March 10, 2020 during the Covid-19.

The study indicated that suspected digital fraud attempts in the Philippines were high in sectors of telecommunications, logistics, and financial services.

“Results showed a significant increase in attempted fraud from the Philippines against telecommunication companies. With more than a ten-fold increase (1,108 percent), this has been a significant development during Covid-19 times,” TransUnion said.

Further, results indicate that the scammers are using fraudulent credit cards to purchase high-end phones and sell them on the black market.

“Fraud can have a potentially disastrous impact on a business’ and a consumer’s finances. In our increasingly digital economy, being able to spot fraudulent transactions whilst still providing genuine consumers with a great experience is a balancing act that organizations need to solve. By using the latest solutions, businesses can build trusted relationships and transact with confidence knowing they are safeguarding both themselves and the consumers they serve,” Arellano said.

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