Average Reported Fraud Loss in Hong Kong Exceeds HK$33,500 a Year According to TransUnion Report
City ranked third globally among markets surveyed for highest median financial loss due to fraud
- Hong Kong’s suspected digital fraud rate exceeded the global level for the fifth consecutive year, reaching 6.2% in 2024
- Retail exhibited the highest rate of suspected digital fraud in Hong Kong last year, followed by communities and financial services
- Majority (95%) of Hong Kong respondents expressed concern about falling victim to fraud amid rising online transactions
Insights from the newly released TransUnion (NYSE: TRU) H1 2025 Update to the State of Omnichannel Fraud Report revealed that 6.2% of all attempted digital transactions where the consumer was in Hong Kong were suspected to be digital fraud1 in 2024, 15% higher than the global rate of 5.4%. This marks the fifth consecutive year that Hong Kong’s suspected digital fraud rate has exceeded the global level since 2020 when TransUnion began research on this metric. The trend highlights vulnerabilities exacerbated by the city's rapid digital adoption and increasingly sophisticated cybercriminal tactics.
More notably, among consumers TransUnion surveyed in 18 countries and regions for the report between November and December 2024, almost one in three (29%) said they lost money due to online, email, phone call or text messaging fraud in the last year. In Hong Kong, 29% also said they lost money due to fraud at an average cost of US$4,332 per person, which was over HK$33,5002 in local currency. This figure significantly surpassed the global average of US$1,747 (over HK$13,6002), positioning Hong Kong with the third highest average amount of reported fraud loss across surveyed international markets.
Retail, communities and financial services ranked as the top three industries targeted by suspected digital fraud in Hong Kong
In 2024, the retail industry recorded the highest suspected digital fraud rate at 17.8% for transactions where the consumer was in Hong Kong. It represented a staggering 113% year-on-year (YoY) increase, the largest increase in the suspected digital fraud rate from 2023 to 2024 for retail among all countries and regions analysed. This rapid increase also far surpassed the YoY digital transaction growth of 15% within the sector, suggesting a heightened likelihood of fraudulent activities outpacing overall industry growth.
This trend echoed with local data from the Hong Kong Police Force, which recorded almost 12,800 online shopping fraud cases in 2024, resulting in losses of over HK$356 million, an increase of 43% in cases and 87% in financial losses compared to 20233, underscoring the pressing need for enhanced safeguards in the retail ecosystem.
The communities industry, which includes venues such as online dating and forums, came close behind with the second highest suspected digital fraud rate in Hong Kong at 17.0%, followed by financial services at 5.4% in 2024.
Although financial services remained among the top three industries most targeted by suspected digital fraud in Hong Kong, this rate has significantly decreased by 18% YoY (down from 6.6% in 2023), even as the number of digital transactions in financial services in Hong Kong increased by almost one fourth (23%). This digital fraud rate decrease may be attributed to various measures implemented by the Hong Kong government, such as the expansion of Suspicious Account Alert for internet banking and physical branch transactions4, which has bolstered customer protection against rising fraud risks.
Despite these findings, fraudsters are highly adaptable, constantly evolving their tactics to target unprepared victims. Businesses and consumers must stay vigilant and informed about the latest fraud trends to avoid being deceived. According to the Hong Kong Monetary Authority (HKMA), since local banks implemented measures to combat malware in February 20245, fraudsters swiftly shifted to schemes that trick victims into revealing SMS one-time passwords (SMS OTPs) for ongoing fraudulent activities.
“With the average reported fraud loss in Hong Kong exceeding HK$33,500 — far surpassing the latest median monthly local income of HK$22,0006 — the situation certainly needs greater public attention. While combating fraud remains the city’s primary goal, stronger collaboration among regulators, businesses and consumers is essential for effectively mitigate risks. We look forward to seeing more partnerships across various sectors to further enhance our defenses collectively,” said Eric Cheung, head of solution consulting at TransUnion Asia Pacific.
Retail had the highest rate of suspected digital fraud in Hong Kong in 2024, outpacing overall digital transactions growth in the industry
Industry | Global suspected digital fraud attempt rate in 2024 | Hong Kong suspected digital fraud attempt rate in 2024 | Hong Kong digital transaction volume change from 2023 to 2024 | Hong Kong suspected digital fraud attempt rate % change from 2023 to 2024 |
Retail | 7.6% | 17.8% | +15% | +113% |
Communities (online forums and dating sites, etc.) | 11.6% | 17.0% | +4% | +2% |
Financial services | 4.9% | 5.4% | +23% | -18% |
Insurance | 2.0% | 3.9% | +4% | -4% |
Telecommunications | 3.0% | 3.7% | -54% | -35% |
Source: TransUnion TruValidate™
Hong Kong respondents remained concerned about falling victim to fraud amid increasing online transactions
The TransUnion-commissioned survey also revealed a growing reliance on online transactions among Hong Kong consumers. Close to one in three (32%) respondents reported conducting more than half of their finance, retail and business transactions online, an increase from 27% in 2023. Among generations surveyed (Gen Z, Millennials, Gen X and Baby Boomers) 7, Gen Z respondents demonstrated the most significant shift, with almost one in two (44%) conducting more than 50% of their transactions online, a rise from 30% in the previous year.
With rising online transactions, 95% of Hong Kong respondents expressed concern about falling victim to fraud, highlighting the widespread apprehension and the necessity for businesses to enhance protective measures against online deception throughout the digital journey.
Among those who indicated they were targeted by email, online, phone call or text messaging fraud within the last three months (51%), phishing (the use of fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) was the leading type of fraud experienced by respondents in Hong Kong since TransUnion began conducting this survey in 2022, suggesting a persistent trend.
"While the city’s rapid digital adoption has unlocked immense economic opportunities and consumer convenience, it has also exposed vulnerabilities that sophisticated cybercriminals are actively exploiting," added Cheung. "Although consumers are increasingly aware of potential digital fraud in conducting transactions online according to our report findings, some still unfortunately became victims. To sustain business growth by effectively addressing consumers’ rising digital needs, it is crucial for businesses across all industries to leverage broader data and analytics, actively safeguarding themselves and their consumers by adopting friction-right fraud prevention solutions."
TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate. Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.
