The volume of suspected online retail fraud coming from the Philippines during the onset of the 2020 holiday shopping season has dropped by 33.41% compared to the same period in 2019. This is according to the findings of recent research conducted by TransUnion.
“The likely explanation for this decline is that fraudsters recognized that e-commerce providers are doing a good job stopping fraud and have moved elsewhere for the time being,” said TransUnion Philippines President and CEO Pia Arellano.
The global information and insights provider noted that such a decrease aligned with the global rate, which also decreased slightly to 15.54% this year from 15.70% in the same period in the previous year. These findings were based on online retail transactions analyzed by the company for its e-commerce customers during the traditional start of the holiday shopping season worldwide (from the US Thanksgiving Holiday on November 26 to Cyber Monday on November 30).
The TransUnion Financial Hardship Study was conducted from October 28 to November 5. It found that 37% of 9,515 consumer-respondents globally were targeted by digital fraud linked to Covid-19. That is a 28% rise from the findings of the same survey in the April 13, 2020 week.
Arellano said the data show that fraudsters are increasingly utilizing the pandemic to prey on consumers who are already facing financial challenges. “With the Covid-19 pandemic accelerating the move from offline to online transactions, detecting digital fraud attempts has become paramount for e-commerce providers,” she said, adding that consumers must make “friction-right or hassle-free digital transactions.”
TransUnion uses its Global Fraid Solutions to unite consumer and device identities to detect threats across markets while ensuring friction-right user experiences. Those solutions fuse traditional data science with machine learning to provide businesses unique insights about consumer transactions, thereby safeguarding tens of millions of transactions daily.