A new analysis by TransUnion, a global credit reporting agency and information solutions provider, reveals that 15 percent of all attempted e-commerce transactions in the Philippines on Black Friday, Nov. 29, 2024, were flagged as potentially fraudulent—the highest rate recorded during the five-day (Black Friday to Cyber Monday) 2024 holiday shopping weekend.
While fraud rates in the country have gradually declined over the years, they remain alarmingly higher than global averages, highlighting the critical need for vigilance among businesses and consumers alike.
Key highlights
Black Friday dominance: The Philippines recorded its highest suspected digital fraud rate of 15 percent on Black Friday, compared to the global average of 4.5 percent.
Holiday trends: During the 2024 holiday shopping weekend (Nov. 28 to Dec. 2), the Philippines' average suspected fraud rate was 13.6 percent, down from 14.3 percent in 2023, but still 196 percent higher than the global rate of 4.6 percent.
Year-round concerns: For the year leading up to the holiday shopping period, the Philippines saw a suspected fraud rate of 12.3 percent for non-holiday transactions, significantly higher than the global non-holiday average of 7.5 percent.
Consumer vigilance: TransUnion’s Q4 2024 Consumer Pulse Study found that 91 percent of Filipino respondents expressed moderate to extreme concern about digital fraud, the highest level of awareness among surveyed regions.
Global comparison: The decline in suspected fraud rates in the Philippines (5 percent) lagged behind the global reduction of 23 for the holiday period.
Proactive measures: An increasing number of Filipinos are actively monitoring credit reports and account activities to guard against fraud, underscoring heightened awareness and proactive consumer behavior.
Call to action: TransUnion emphasized the need for businesses to adopt comprehensive fraud prevention solutions and for consumers to remain vigilant during peak shopping seasons.
This analysis highlights both the progress made and the persistent challenges in addressing digital fraud in the Philippines, particularly during high-transaction periods like the holiday season.--Ed: CSN
