Digital Fraud Targeting Video Gaming Industry on the Rise in the Philippines
A new analysis conducted by TransUnion’s global intelligence network has revealed that the video gaming industry is the most targeted sector for fraudulent digital transactions in the Philippines. The analysis found that in the first half of 2023, more than one in 20 global digital transactions were suspected to be fraudulent.
TransUnion, a global information and insights company, reported that among all industries, the suspected digital fraud rate stood at 8.2 percent in the first half of 2023 when the consumer was located in the Philippines during the transaction. The analysis also showed that the retail and video gaming industries saw the highest rates of suspected digital fraud globally at 10.6 percent and 7.0 percent, respectively.
Furthermore, the analysis revealed that the video gaming industry had the highest suspected digital fraud attempt rate among all industries in the Philippines in the first semester of 2023, at 15.2 percent. Conversely, the number of digital transactions in the Philippines in the video gaming industry decreased by 19.4% year on year.
On a global scale, the insurance and logistics industries had the lowest suspected digital fraud attempt rates in the first half of 2023. However, overall, the suspected digital fraud rate stood at 5.3 percent, up from 4.5 percent a year ago.
Yogesh Daware, the chief commercial officer at TransUnion Philippines, emphasized the impact of digital fraud on consumer trust and industry growth. He highlighted the importance of taking into consideration various factors when measuring the impact of digital fraud on different industries.
The analysis also comes after TransUnion’s Q3 Philippines Consumer Pulse Study, which found that 62 percent of survey respondents had been targeted by fraud but did not become victims, while nine percent had been targeted and fell victim. The most frequent fraud schemes reported by respondents were phishing, smishing, and money/gift card scams.
TransUnion’s digital fraud findings were based on intelligence from its identity and fraud product suite, TransUnion TruValidate™, which helps secure trust across channels and delivers efficient consumer experiences. The suspected digital fraud attempts reflect interactions that TransUnion customers either denied in real time due to fraudulent indicators or determined to be fraudulent after a manual review process compared to all transactions assessed for fraud.