Nearly 1 in 5 holiday e-commerce transactions in HK flagged for fraud

65% of consumers plan to make over half of their holiday purchases online.

About 17.4% of attempted e-commerce transactions in Hong Kong during the 2024 holiday shopping period were flagged for suspected digital fraud, according to TransUnion report.

This includes the "11/11" (Singles’ Day) and Black Friday to Cyber Monday (28 November to 2 December) events, making Hong Kong the second-highest amongst the regions analysed. In comparison, the global average of suspected fraud during this period was just 4.6%.

The fraud rate in Hong Kong was also 4.2% higher than the city's overall fraud rate for 2024, which stood at 16.7%. Black Friday saw the highest rate, with 23.4% of transactions flagged for fraud.

Jerry Ying, chief product officer at TransUnion Asia Pacific, warned that the surge in online shopping during the holiday season is creating more opportunities for fraudsters.

“The significantly higher rate of suspected digital fraud in Hong Kong during the holiday shopping period compared to other global markets is a wake-up call for both consumers and online retailers to remain vigilant,” he said.

“Safeguarding against fraud is a shared responsibility, requiring collective efforts from all parties to ensure a safe e-commerce experience,” Ying added.

Despite the fraud risk, online shopping continues to rise, with 65% of Hong Kong consumers planning to make over half of their holiday purchases online, according to TransUnion’s Q4 2024 Consumer Pulse Study.

The report also found that younger consumers are even more likely to shop online, with 80% of Gen Z and 76% of Millennials reporting they will make most of their purchases through digital channels.

However, 67% of consumers in Hong Kong expressed concern about falling victim to digital fraud this year. Ying emphasized the importance of retailers using fraud detection tools early in the transaction process to protect both consumers and legitimate transactions.