Decrease in suspected digital fraud observed in HK-originated transactions

Global insights company TransUnion’s quarterly digital fraud analysis has observed a 26.5% decrease in suspected digital fraud rate for transactions originating from Hong Kong, compared to the same quarter last year. Under TransUnion’s analysis, some of the suspected digital fraudsters in Hong Kong shifting their target industries, the suspected fraud rate year-over-year (YoY) originating in Hong Kong declined in industries such as logistics, financial services and communities while fraudsters significantly increased their scams in sectors such as retail, gambling and travel & leisure.

According to the company’s recent survey, consumers claimed they were targeted more with digital fraud from November 2021 to February 2022. Among 1,088 Hong Kong adults surveyed, 39% said they had been targeted by digital fraud in the last three months, up six percentage points from the previous quarter. Of those consumers who said they had been targeted, they reported phishing scams most (35%) followed by identity theft and money/gift card scams (27% respectively).

Jerry Ying, chief product officer of TransUnion APAC said: “Despite consumers indicating being increasingly targeted albeit over a different time period, suspected fraud rates appear to be stabilizing more recently with our customers. During this period when fraudsters are searching for new vulnerabilities, many organisations have shifted their focus to identifying more of the good customers and transactions to increase revenue and customer lifetime value.”

He also added that sophisticated fraudsters pressure test which industries have ramped up fraud prevention measures and as a result, turning to new industries if efforts are being thwarted, “That’s exactly what we have observed recently as fraudsters look for new opportunities or points of vulnerability.” He also said that it is paramount that during this dip companies focus on optimizing the customer experience for good customers. The report concluded about fraud against businesses based on intelligence from billions of transactions and more than 40,000 websites and apps.

(Photo courtesy: 123rf)

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