Festive fears, virtual cheers: Understanding consumer holiday shopping concerns
In many parts of the world, people look forward to holiday sales. The Philippines is no exception. With retailers offering great deals on a variety of products, it’s hard to resist picking something up for yourself or your loved ones with the festive season looming ahead.
Especially after the pandemic, holiday sales have carried over into the online shopping space as well. However, with the sheer volume of transactions happening both in-store and online during the holidays, there are bound to be fraudsters looking to make gains off shoppers eager to spend some cash, swipe their cards or use other forms of electronic and online payment.
done in a matter of clicks.
A holiday upswing in fraudulent activity
According to a recent TransUnion study, despite the percentage of suspected e-commerce fraud in 2023 before the holiday shopping season being the lowest in the past three years at 10.7 percent, there was a rapid uptick from the start of the 2023 holiday shopping season. In that five-day period, suspected digital fraud in the country increased 19 percent to 12.8 percent compared to the rest of the year.
The suspected rate of digital fraud in the Philippines was the highest on Black Friday, Nov. 24, with almost 15 percent of all transactions suspected to be fraudulent on that day.
With more sales, shopping holidays and various “payday sales” on the horizon, if this data is any indication, it won’t be a surprise that fraudsters will increase their activity.
While Filipinos are getting more and more accustomed to transacting online, we also see an encouraging sign that more are recognizing the prevalence and impact of digital fraud.
With a shared responsibility to protect consumers, retailers, brands, and even financial institutions, players must continue to educate consumers on common forms of digital fraud, helping them identify scams before they fall victim.
The most recent TransUnion Consumer Pulse Study (CPS) revealed that 93 percent of Filipinos are concerned about digital fraud. With the emergence of various means to digitally defraud unwitting victims such as phishing and smishing, the study also showed that 90 percent of Filipinos express concerns over sharing their personal information. This heightened vigilance is a recognition of the risks associated with the digital world.
directly from a seller through the Internet, using a web browser or a mobile app.
Taking steps for a more joyful online shopping experience
E-commerce has made the shopping experience so much more convenient. With the variety of retail sites and online shopping platforms, buying the things you want and need can all be done in a matter of clicks.
However, with more avenues available for retailers and brands to engage with consumers, the more opportunities fraudsters have to possibly get their hands on their credentials and other sensitive information.
As an online shopper myself, I firmly believe that people should enjoy online shopping spaces without the fear of falling victim to fraud. With that in mind, both consumers and retailers must continue to exercise vigilance and take the necessary steps to stop digital fraud before it happens.
With a shared responsibility to protect consumers, retailers, brands, and even financial institutions, players must continue to educate consumers on common forms of digital fraud, helping them identify scams before they fall victim.
Banks and fintech institutions continue to shore up their security by requiring measures such as Multi-Factor Authentication (MFA) for consumers to carry out online transactions. At the same time, consumers can also keep themselves from being easy targets. Setting strong passwords, safeguarding information, and being mindful of suspicious emails and websites can go a long way in keeping one’s funds and personal data secure.
As technology keeps evolving at a rapid pace, so will the methods fraudsters employ for their personal gain. By recognizing the problem of digital fraud and actively taking steps to embrace security, both consumers and retailers can enjoy a more joyful online shopping experience this holiday season and beyond.