The Philippines has seen an alarming rise in digital fraud, with e-commerce transactions particularly targeted during the recent holiday shopping weekend. From Black Friday through Cyber Monday, fraud attempts reached a staggering 15 percent of all online transactions on Nov. 29—significantly higher than the global average of 4.6 percent. While the overall digital fraud rate during the period was 13.6 percent, slightly lower than last year’s 14.3 percent, it remains a major concern, especially when compared to the global average of 4.6 percent.
Fraudsters are taking advantage of the holiday season, capitalizing on the influx of Filipino consumers receiving salaries, 13th-month pay, and Christmas bonuses. As online shopping surges during this period, so does the opportunity for scammers to exploit unsuspecting shoppers eager to spend their bonuses on festive deals.
Ongoing Risk: Digital Fraud Doesn’t Stop After the Holidays
Even outside of peak shopping seasons, digital fraud remains a significant problem. The Philippines recorded a 12.3 percent fraud rate during non-holiday periods in 2023, again far exceeding the global average of 7.5 percent. With an increasing number of transactions taking place online, fraudsters are becoming more sophisticated in their tactics, and consumers must remain vigilant year-round.
What’s Being Done?
The Philippine government is attempting to address the surge in digital fraud through the Anti-Financial Account Scamming Act (AFASA), signed into law in 2023. AFASA aims to combat cybercrimes such as money laundering and social engineering scams, giving authorities the power to investigate and prosecute fraudsters. While these efforts are crucial, they alone are not enough to safeguard consumers in an increasingly digital economy.
Stay Alert: Protect Yourself From Digital Fraud
This holiday season, and beyond, it’s critical for Filipino consumers to be cautious when shopping online. Use secure payment methods, double-check website URLs, and be wary of unsolicited offers. Fraudsters are relentless, and only by staying alert can consumers protect themselves from falling victim to cybercrime.
