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The Philippines recorded the second-highest suspected digital fraud rate globally last year, primarily due to a high volume of online social media users creating opportunities for fraudsters.
Based on TransUnion’s first semester 2025 update to the State of Omnichannel Fraud Report, the Philippines’ suspected digital fraud rate is 13.4 percent, consistently exceeding the global average of 5.4 percent since 2020.
The report noted a five percent increase in the country’s fraud rate from 2023, contrasting with an eight percent global decrease.
The TransUnion study, which surveyed consumers across 18 regions in late 2024, indicated that 74 percent of Filipinos reported being targeted by fraud schemes in the preceding three months, significantly higher than the 53 percent global average.
Furthermore, 34 percent of Filipinos reported financial losses due to fraud between November 2023 and December 2024, surpassing the global rate of 29 percent.
Yogesh Daware, TransUnion Philippines chief commercial officer, said that the average reported fraud loss for Filipinos was $768 in the past year.
He added that while this is lower than the global median, it still has a substantial financial impact on most Filipino households.
The report identified communities, encompassing online dating and social media platforms, as the industry with the highest suspected digital fraud rate in the country at 19.2 percent in 2024.
Daware noted that with 78 percent of the Philippine population using social media, the high user volume presents numerous avenues for fraudulent activity.
He added that despite a global and local decrease in digital transactions within communities, suspected fraud in this sector has increased, indicating a shift in fraudsters' tactics.
Following communities, the retail sector had the second-highest suspected digital fraud rate in the Philippines at 13 percent.
Notably, while remaining among the top three targeted sectors at 6.3 percent, the financial services industry saw a significant 35 percent year-over-year decrease in its suspected digital fraud rate, even as transaction volumes increased by 17 percent.
This improvement, the report noted, may be linked to increased efforts by the government and private institutions to combat fraud.
Daware noted the high level of concern among Filipinos regarding fraud. He added that while progress is evident in the financial services sector, vigilance and collaboration across industries are crucial to effectively combat evolving fraud tactics.
