The suspected digital holiday shopping fraud has decreased 62% in Hong Kong but increased 82% globally compared to rest of 2022, according to a TransUnion survey.
The survey found 15% of all global eCommerce transactions reviewed between the Thursday before Black Friday, 24 November and Cyber Monday, 28 November were potentially fraudulent. The most popular day for suspected digital fraud attempts in Hong Kong was Black Friday on 25 November.
For eCommerce transactions originating from Hong Kong, 7% were suspected fraudulent during that period, along with the Singles’ Day on 11 November.
The study also revealed the share of suspected digital fraud attempts for each individual day in the holiday shopping period for transactions in Hong Kong and globally, with 25% of risky transactions on 11 November, 21% on 24 November, 26% on 25 November in Hong Kong, which were relatively higher compared to risky transactions globally.
TransUnion also revealed in the analysis the top types of potentially fraudulent eCommerce transactions during the holiday shopping season globally. This year, promotion abuse, where a user abuses site promotions, such as refer-a-friend and free giveaways, and account takeover where someone other than the owner of an account uses it without permissio, were the leading types of fraud attempts.
The decrease of suspected digital fraud coming from Hong Kong during the traditional busiest days of the holiday shopping season occurred as consumers express concern about being victimised. TransUnion’s 2022 Q3 Consumer Pulse Study conducted between 19 August and 1 September found that the vast majority of Hong Kong consumers (86%) are concerned with being victimised by online fraud this holiday season.
“Fraudulent activity tends to be prevalent in online retail that has become an integral part of everyday life,” said Jerry Ying, chief product officer at TransUnion Asia Pacific. “Despite the fact that consumers have begun returning in larger numbers to in-person shopping following the gradual relaxation of social distancing measures, online retail continues to be the preferred means for many. It is important that online retailers ensure consumer security and privacy protections, which is important to consumers, but in a way which ensures a seamless shopping experience that minimises unnecessary friction,” he added.
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