DIGITAL FRAUD RATES in the Philippines during the Black Friday shopping weekend this year were higher than the global average, according to an analysis by TransUnion.
“For all attempted e-commerce transactions where the consumer was in the Philippines, 13.6% were suspected of digital fraud during the 2024 holiday shopping weekend — down from 14.3% in the same period from the Thursday before Black Friday to Cyber Monday 2023,” TransUnion Philippines said in a statement. “However, despite decreasing numbers within the country, the suspected retail digital fraud rate during the holiday shopping weekend in the Philippines is alarmingly 196% higher than the global rate of 4.6% — which dropped from 6.0 last year.”
“We are encouraged to see a gradual decline in digital fraud rates within the Philippines market. However, these rates still significantly exceed the global rate, which underscores the need for continued efforts from both public and private sectors to further address the prevalence of digital fraud in the country. With the increase in suspected fraudulent activities observed during the holiday shopping weekend, it is imperative for both businesses and consumers alike to remain vigilant as we navigate this busy festive season,” Yogesh Daware, chief commercial officer of TransUnion Philippines, said.
TransUnion said there was a higher suspected digital fraud rate during this year’s five-day Black Friday holiday shopping weekend (Nov. 28-Dec.2) versus the global level for attempted e-commerce transactions where the consumer was in the Philippines.
It found that 15% of all attempted e-commerce transactions on Black Friday, Nov. 29, where the consumer was in the Philippines during the time of transaction, were suspected to be digital fraud, higher than 4.5% globally.
“It was the highest suspected retail digital fraud rate in the Philippines out of all the days in the 2024 holiday shopping weekend,” it said.
“As most private sector employees in the Philippines are salaried under a bi-monthly pay cycle, many Filipino consumers received their salaries within the 2024 holiday shopping weekend on Nov. 29,” TransUnion said. “It is also possible for most consumers to have received their 13th month pay and any other Christmas bonuses they may be eligible for around this time of the year as well.”
For Nov. 28, the Philippines’ digital fraud rate was at 13.7% (versus 5.3% globally). This went down to 12.1% on Nov. 30 (4.2%), then up to 12.2% on Dec. 1 (4.6%) and to 14% on Dec. 2 or Cyber Monday (4.5%).
Fraudsters normally strike over the holidays as consumers ramp up spending, TransUnion added.
“In addition to the Philippines seeing a higher suspected retail digital fraud rate compared to the global rate during the holiday shopping weekend, its speed of decline also lagged behind,” it said.
“TransUnion observed a 5% decrease in the rate of suspected retail digital fraud during the holiday shopping weekend in the Philippines between 2023 and 2024. This is notably lower than the global decline rate of 23% during the same period,” it said.
The Philippines’ suspected e-commerce fraud rates have been consistently higher than the global average this year, TransUnion said.
“Beyond this year’s holiday shopping weekend, for the days in 2024 up to that period (Jan. 1 to Nov. 27, 2024), the Philippines continued to show higher suspected retail digital fraud rates than globally,” it added.
The percentage of suspected e-commerce fraud in the Philippines stood at 12.3% for the days leading up to this year’s Black Friday shopping weekend versus the 7.5% global average, TransUnion data showed.
This was slightly up from the 12.2% seen last year. Meanwhile, the global average for the same period dropped from 12.5% in 2023. — L.M.J.C. Jocson