Global rankings reveal the Philippines places second highest in suspected digital fraud incidents.
The Philippines Faces a Surge in Digital Fraud, Second Only to India
In a concerning development, the Philippines grabbed the unwanted title of having the second-highest digital fraud rate globally, according to TransUnion's global intelligence network. The country's digital transactions in 2024 saw a suspected fraud rate of 13.4%, a staggering 148% higher than the global average of 5.4%.
India topped the list with a rate of 19%, while the Dominican Republic followed with 10.9%. For the fifth consecutive year since 2020, the Philippines' digital fraud rate exceeded the global average. Interestingly, while the worldwide fraud rate decreased by 8% from 2023, the Philippines experienced a 5% increase.
Filipinos in the Crosshairs
A TransUnion survey conducted across 18 countries and regions in late 2024 revealed that an alarming 74% of Filipino consumers reported being targeted by various fraud methods like emails, phone calls, online platforms, or text messaging. This figure far surpassed the global average of 53%. Moreover, 34% of Filipinos reported financial losses due to these tactics between November 2023 and December 2024, exceeding the global rate of 29%.
The average reported fraud loss among Filipinos last year was approximately $768, which, while lower than the global median of $1,747, still represents a substantial financial hit, equivalent to over two months' salary for most Filipino households.
Industry Vulnerabilities
TransUnion's report identified "communities" such as online dating and social media sites and forums as the industry with the highest suspected digital fraud rate in the Philippines at 19.2% in 2024. This alignment with global trends suggests that the high user volume in these sectors creates opportunities for fraudsters. Despite a global and local decrease in digital transactions within communities last year, TransUnion's analysis showed an increase in suspected digital fraud transactions, indicating that fraudsters are intensifying their attacks and diversifying their methods.
The retail industry followed communities with a suspected digital fraud rate of 13%, significantly higher than the global rate of 7.6%. While financial services remained among the top three targeted industries in the Philippines at 6.3%, this rate saw a substantial 35% year-over-year decrease, even as digital transactions in the sector increased by 17%.
Battling the Fraud Wave
Despite the challenging landscape, the decline in suspected digital fraud in financial services is a promising sign, possibly related to increased efforts from both the Philippine government and private institutions to combat fraud. In November 2024, TransUnion launched the Fraud Industry Council to bolster a collective initiative within the local banking industry to strengthen consumer protection.
"While fraud remains a significant concern for Filipinos, the decline in suspected digital fraud in financial services alongside intensified public and private sector efforts is encouraging," said Yogesh Daware, chief commercial officer of TransUnion Philippines.
However, Daware underscored the importance of vigilance as fraudsters consistently adapt their tactics. He anticipates further collaborations across industries to strengthen fraud defenses through increased awareness, partnerships, and advanced fraud prevention technologies.
- The Philippine government and private institutions have been making efforts to combat digital fraud, as evident by the 35% year-over-year decrease in suspected digital fraud in financial services.
- In line with the declining fraud rate in financial services, TransUnion launched the Fraud Industry Council in November 2024 to reinforce a collaborative approach within the banking industry, aimed at bolstering consumer protection.
- In 2025, the business sector in the Philippines must continue to address digital fraud issues, particularly in industries like online dating, social media, and retail which have reported higher rates of suspected digital fraud than the global average.
- To prevent financial losses associated with digital fraud, businesses should implement advanced fraud prevention technologies and remain vigilant, as fraudsters consistently adapt their tactics to bypass existing defenses.
- Industry leaders like TransUnion can play a crucial role in data-driven decision making, providing valuable insights to both the government and private sector regarding digital fraud trends and vulnerabilities within specific industries.
- By working together in partnerships and adopting advanced technology, the Philippines can effectively tackle the surge in digital fraud, aiming to bring its digital fraud rate closer to the global average and protect businesses and consumers alike from the financial and emotional consequences of fraudulent transactions.
