Data from a recent survey shows that 70% of the general population have a general understanding of what credit is. 

According to the second annual Credit Perception Index released by the country’s first comprehensive private credit reference agency, TransUnion, 40% of Filipinos own a credit card. This figure is a 15% increase from the number of credit card holders in 2023. However, despite the increase in ownership of credit cards and other financial products, Filipinos are still greatly concerned about credit card security, particularly issues such as fraud and scams. In fact, this concern is shared by 46% of Filipinos. 

Banks and other financial institutions here in the country play a crucial role in addressing this concern. One such way is by investing in cybersecurity and other preventative measures that can decrease the likelihood of fraud and scams. 

In addition to these, there are other ways banks and other financial institutions can address concerns about fraud and scams. 

How Fraud and Scam Concerns Can Be Addressed

According to the Credit Perception Index, 22% of Filipinos want more transparency from banks and other financial institutions when it comes to credit cards and other financial products. Specifically, there is a demand for more transparency over terms and conditions, as well as hidden charges. 

On the other hand, 19% of Filipinos want increased credit features that guarantee both security and reliability. Meanwhile, 10% believe that responsive customer service and support can help address fraud and scam issues. 

The government, according to 3% of Filipinos, also plays a role in addressing security concerns involving credit cards and other financial products. The Credit Perception Index shows that Filipinos likewise believe that strong government regulation and oversight can help address the problem. 

Filipinos Need Financial Education 

One in 20, or 5%, of Filipinos believe that it is necessary to have personalized guidance and financial education in order to combat fraud and scams. However, the Credit Perception Index shows that 62% of the general population look to social media for more information about credit products. The same percentage of the country’s unbanked population follows the same practice. 

While 55% of the general population are able to get information from banks and other financial institutions, only 36% of the unbanked population say that they are able to do the same. The low percentage of unbanked Filipinos who are able to gather information from banks shows a need that must be addressed. 

While social media can be a useful source of information, it is also a venue where wrong information can easily be spread. Banks, other financial institutions, and the government should spearhead efforts to ensure that the right information can reach the public. 

Such information should be accessible to all and should uphold inclusivity. Every sector of the population should have access to financial education and not just a select few. 

How the Public Can Protect Itself from Fraud 

While banks, other financial institutions, and even the government play critical roles in preventing fraud and scams, the public also has a role to play. Consumers, in particular, can take practical steps to ensure their safety and security, especially when transacting online. 

One practical step that the public can take is to avoid clicking suspicious links. Malicious links can lead to identity theft or even the loss of money, so the public should take extra care when receiving text messages and emails, particularly those that claim they are from banks. 

Another step the public can take is practicing due diligence and verifying if the businesses they’re transacting with are legitimate. Many scam businesses have social media accounts and are able to masquerade as real businesses selling actual products and services. 

The public should make the effort to look into the businesses they transact with and check for legitimacy. This can be done by reading comments left by previous customers, reading reviews left on Google and social media, or asking someone else to vouch for the authenticity of the business.