Filipino consumers continue to face elevated exposure to digital fraud despite reporting lower financial losses compared to global markets, according to new data from TransUnion (NYSE: TRU).
The company’s latest analysis found that the Philippines recorded a 4.1% suspected digital fraud rate in 2025, remaining above the global average of 3.8% for the sixth straight year.
TransUnion defines suspected digital fraud attempts as transactions flagged by clients for fraudulent indicators or policy violations across websites and applications globally.
Findings from TransUnion’s H1 2026 Top Fraud Trends Report also reflected growing consumer exposure to online scams. Nearly three-fourths or 72% of surveyed Filipinos said they were targeted by digital fraud attempts through online platforms, email, phone calls, or text messages between August and December 2025 — significantly higher than the global average of 53%.
Despite the widespread exposure, the financial impact per incident remained comparatively lower in the Philippines. Around 38% of Filipino consumers who encountered fraud said they lost money last year, with the median reported loss reaching USD850, or roughly ₱50,000. This was below the global median fraud loss of USD1,671.
Fraud in the Philippines driven by scale, not severity
In an exclusive interview with FintechNewsPH, Yogesh Daware, chief commercial officer of TransUnion Philippines, shared that the local fraud landscape is increasingly being characterized by frequent low-value scams rather than isolated large-scale attacks.
“Our data indicates that fraud in the Philippines is driven more by scale than severity,” Daware said.
“While a significant proportion of Filipino consumers report being targeted through online, email, phone call, or text messaging fraud attempts, the typical financial loss per incident is relatively lower compared to other markets,” he added.
The report also highlighted how the Philippines’ high digital engagement is contributing to greater fraud exposure. TransUnion noted that 91% of Filipinos now conduct at least part of their account management activities online, including profile updates, account modifications, and other digital transactions.
This growing dependence on digital channels has expanded opportunities for fraudsters, particularly in identity-focused scams.
Among Filipinos who reported fraud attempts, phishing schemes — including fake websites, emails, QR codes, and social posts designed to steal personal data — emerged as the most common tactic at 45%.
This was followed by smishing or fraudulent text message scams at 38%, while 28% encountered third-party seller scams on legitimate online retail platforms.
Account login emerged as the highest fraud-risk stage
IMAGE CREDIT: TransUnion
TransUnion’s analysis found that fraud risks in the Philippines were most concentrated during the account login stage of the digital consumer lifecycle.
The country recorded a 6.1% suspected fraud rate at login, significantly above the global average of 4.3%. This was followed by account creation at 4.5% and financial transactions at 1.1%.
“With fraud risk in the Philippines highest at the account login stage, and phishing and other scams primarily focused on stealing credentials, fraud in the Philippines is fundamentally an identity issue,” Daware said.
He added that fraudsters are increasingly leveraging impersonation, synthetic identities, and AI-powered tactics to bypass detection systems and scale attacks more efficiently.
Logistics sector records highest fraud rate
IMAGE CREDIT: Freepik
Across industries, the logistics sector recorded the highest suspected digital fraud rate in the Philippines in 2025 at 8.5%, rising from 6.0% a year earlier.
The report linked this increase to the growing prevalence of fake delivery scams and fraudulent cash-on-delivery schemes, where consumers are tricked into paying for unordered or misrepresented items.
Insurance followed with a 7.6% fraud rate, while online communities — including dating platforms, social media sites, and forums — posted a 5.8% fraud rate.
Retail recorded a 5.2% fraud rate, while financial services stood at 2.3%.
As fraud threats continue to spread across sectors, TransUnion said stronger collaboration between industries will be critical in improving fraud prevention and consumer protection.
The company highlighted its Fraud Industry Council (FIC), launched in the Philippines in late 2024, which brings together financial institutions and industry players to strengthen fraud intelligence sharing and coordinated defense efforts.
“The latest data from TransUnion shows that fraud risks are present across sectors, affecting consumers at multiple points in their digital journeys,” Daware said.
“Ultimately, this effort is about enabling people to transact with confidence, supporting business growth, and strengthening trust across the country’s digital economy.” To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.
