More potential fraud attempts involving e-commerce transactions were detected during the holidays in the Philippines when online retail activities hit their high, according to TransUnion.
In a statement on Tuesday, the consumer credit reporting agency said the number of digital fraud attempts during the week of Black Friday sale (Nov. 24 to Nov. 28, 2022) increased by 70 percent compared to the previous year.
The report noted that 15 percent of the global e-commerce transactions for the period were likely to be fraudulent. About 4 percent of these came from the Philippines.
The most common types of fraud observed by TransUnion include fake promotions, wherein hackers entice users to click on links that could lead to identity theft by dangling non-existent “free giveaways”, and account takeover which refers to illegally accessing someone else’s account.
“Fraudulent activity tends to be particularly prevalent in online retail during the holiday shopping season,” said Pia Arellano, president and CEO of TransUnion Philippines.
Arellano said that many shoppers still prefer to transact online despite the reopening of physical stores, which was described as a change in consumer behavior brought about by the pandemic.
Privacy protection
“It’s important that online retailers ensure consumer security and privacy protections, which is important to consumers, but in a way which ensures a seamless shopping experience that minimizes unnecessary friction,” she added.
Arellano said online retailers “must equip themselves with the proper tools to detect fraud at the first warning sign, and without inhibiting the consumer journey.”
According to TransUnion’s 2022 third quarter consumer pulse study, 96 percent of the Filipino respondents were worried about digital fraud during the holiday season. This was the highest figure recorded globally.
More than half claimed to have been targeted by digital scam in the last three months when the survey was conducted between Aug. 19 and Sept. 1 of last year.
The study noted they did not fall victim to such fraud, noting they knew how to properly act. “[The] majority changed passwords or checked their accounts for unauthorized activity,” it explained.