Survey: HK sees highest suspected digital fraud attempt rate

Hong Kong has the highest suspected digital fraud attempt rate among all markets globally in the first half of 2023, according to the latest report by TransUnion.

The latest TransUnion analysis found that in the first half of 2023, the global suspected digital fraud rate stood at 5.3%, up 18% when compared to the same period in 2022. The volume of global digital fraud attempts increased 27% during that same period.

While in Hong Kong, the suspected digital fraud attempt rate stood at 18.3% in H1 2023 – the highest among all markets and regions studied. The volume mirrored this rise, with a 57% increase in suspected digital fraud attempts originating from Hong Kong in H1 2023 compared to the same period last year, according to the report.

Looking into the transactions originating from Hong Kong, travel and leisure, and communities such as online dating and forums, had the highest suspected digital fraud attempt rate among industries analysed in H1 2023 at 8.1% and 4.8% respectively, followed by the financial services (3.9), telecommunications (3.9%), insurance (2.8%), and logistics (1.4%) industries.

The travel and leisure industry also saw the largest growth in the number of digital transactions from Hong Kong with a 243% increase from H1 2022 to H1 2023. Meanwhile, the logistics industry (-36.6%) and telecommunications industry (-34.5%) saw a significant drop in digital transactions coming from Hong Kong when compared to H1 2022.

“It’s not enough to look at fraud rates alone when attempting to measure the impact of digital fraud on any one particular industry or another. There are other factors that need to be taken into consideration. These include the overall size of the industry in question, in addition to if the industry is growing and if so, how quickly,” said Jerry Ying, chief product officer at TransUnion Asia Pacific.

“Only then can one endeavour to develop a more comprehensive perspective on how digital fraud is impacting these industries. In addition, this can help project where fraudsters may be focusing their efforts moving forward,” he added.

Meanwhile, another survey by TransUnion showed that 32% of Hong Kong respondents indicated that they had been targeted by fraud but did not become a victim of it, while 6% had been targeted and fell victim.

Among those targeted, vishing (34%) was the most frequent fraud scheme by which they reported being attacked, followed by phishing at 31% and smishing at 29%.

“The increasing acceptance of digital services and prevalence of spam calls has significantly contributed to the growth in fraud loss. As consumers rely more on online platforms, they have higher expectations for businesses to protect them from fraudulent activities and proactively identify suspicious accounts,” Ying said.

In response, businesses regardless of their industry shall allocate sufficient resources towards enhancing their data, analytics, and technological capabilities to identify potential fraud in a more accurate and efficient manner, he added.

Related articles:

Report: Digital fraud attempts surge 18% in HK from pre-pandemic levels
Survey: HK sees decline in suspected digital holiday shopping fraud