Philippine businesses lose P4-T to fraud

Filipino companies lost an estimated P4 trillion to fraud over the past year — equivalent to around 6 percent of their annual revenues — according to a new survey by global information solutions firm TransUnion. The H2 2025 Update to the Top Fraud Trends Report gathered insights from roughly 200 business leaders, along with an unspecified number of consumers, to assess the extent of fraud’s impact on Philippine businesses and the public.

TransUnion noted that while the share of revenue lost to fraud in the Philippines remains below the global average of 7.7 percent, fraudulent activity continues to evolve in complexity and scale, affecting companies regardless of size or industry.

“Fraudsters are becoming more sophisticated, exploiting every channel and digital interaction to bypass traditional defenses,” said TransUnion Philippines Chief Commercial Officer Yogesh Daware. “The financial impact revealed in TransUnion’s latest Top Fraud Trends Report is staggering. Organizations must rethink their approach to fraud prevention, moving from reactive and fragmented controls to proactive, data-driven strategies that can adapt to evolving threats and protect trust at every stage of the consumer lifecycle.”

The report also found that 70% of Filipino business leaders are “very or extremely concerned” about the impact of fraud — the third highest among all surveyed countries, behind only the U.S. and India. TransUnion emphasized that fraud schemes tend to grow more intricate as the financial gains for criminals increase.

When asked about the types of fraud encountered, business leaders identified first-party fraud and scam or authorized fraud as the most prevalent, each accounting for 25 percent of incidents. First-party fraud involves falsifying identity or financial information, while authorized fraud refers to schemes that trick victims into voluntarily providing money or sensitive data. The Philippines’ rate of first-party fraud surpassed the global average of 16%, marking the highest incidence among all markets surveyed.

Consumers are feeling the effects as well. According to the study, 65 percent of Filipinos reported being targeted by fraud via online platforms, email, phone calls, or text messages — significantly higher than the world average of 45 percent. Phishing was the most commonly reported tactic, followed by money or gift card scams and smishing, highlighting how digital channels have become prime avenues for criminal activity.

“As fraudsters continue to exploit the country’s high levels of digital activity, the impact extends beyond businesses and individuals to the wider economy,” Daware said. “Protecting both consumers and businesses is non-negotiable. Continued progress will require an end-to-end approach that closes vulnerabilities before they can be exploited. By investing in smarter prevention tools and supporting ongoing fraud education, we not only help protect businesses but also build the consumer trust that underpins a safer, more inclusive digital economy.”