Consumers face high fraud losses despite decline in digital fraud attempts

Most fraud occurs at account login and account creation stages.

Hong Kong consumers are experiencing fewer suspected digital fraud attempts but continue to suffer some of the highest financial losses globally, according to TransUnion’s H1 2026 Top Fraud Trends Report.

In Hong Kong, 2.8% of attempted digital transactions were suspected fraud in 2025, down from 5% a year earlier and below the global average of 3.8%.

Official figures show a similar trend, with fraud cases falling 2.9% year-on-year in 2025 and a further 0.6% decline in Q1 2026, supported by stronger awareness campaigns and tighter fraud controls.

Despite the decline in attempts, financial harm remains severe. A TransUnion survey found that 17% of Hong Kong consumers reported fraud-related losses in the past year, with a median loss of US$6,155 (HK$48,000)—more than 3.5 times the global median and the highest among surveyed markets.

However, victim response remains limited, with fewer than half reporting incidents to police and only 42% placing fraud alerts on credit records.

Risk remains concentrated in specific sectors. Telecommunications recorded the highest suspected fraud rate at 5.8%, followed by community platforms at 5.4% and logistics at 5%, all above global benchmarks.

Fraudsters increasingly rely on impersonation tactics, including posing as telecom staff and exploiting stolen personal data.

Most attacks occur early in the digital journey. Account login fraud reached 10.1% and account creation 9.7%, both well above global levels, whilst fraud during verified financial transactions remained low at 0.3%, suggesting stronger protections after identity verification.

Consumers are responding by demanding stronger safeguards.

About 79% prefer services with explicit authentication and 75% support always-on multi-factor authentication, whilst biometric tools such as facial and fingerprint recognition are gaining traction.

The report said that identity theft, vishing, and money mule schemes remain the main drivers of losses, and that layered security, including identity verification and AI-based detection, is increasingly necessary as fraud tactics evolve.