Collective effort is needed to protect our digital ecosystem

Cybercriminals caused damages worth 30 billion forints in Hungary last year. While active across all industries, their activities pose a particularly high risk to the online retail sector. According to Mastercard’s recently published and large-scale study – filling a long-standing gap in the field – 43% of online marketplace users have experienced some form of fraud attempt, and one in five lost money or data as a result. The research explored the state of cybercrime in Hungary from the perspectives of users, companies, and cybersecurity professionals. Globally, the cost of cybercrime reached $9.5 trillion by the end of 2024, and by 2028, it could soar to $13 trillion—more than 60 times the size of Hungary’s GDP.

Nearly half of the Hungarian population (48%) has been directly or indirectly affected by fraud, yet only around one-fifth (22%) feel adequately prepared to defend themselves against such threats. While 70% of adults know that a bank would never request card details or login credentials by phone or email, numerous crimes occurred last year in which victims were defrauded of over HUF 10 million forints in this way. Despite multi-factor authentication and well-designed security systems, the weakest link is still the emotionally pressured, unprepared, or convenience-seeking user with limited awareness of security risks.

Nevertheless, the false sense of security pervades Hungarian society. Although tens of thousands fall victim to fraud annually and the total damage runs into tens of billions of forints, even the most “digitally savvy” 18-29 age group scores poorly on actual digital security knowledge. According to The Age of Cybercrime 2025—a study initially made available by Mastercard to banks and organizations involved in the Kiberpajzs initiative—the knowledge level of this age group barely reaches 1.5 on a four-point scale. The report emphasizes that the alarming growth of cybercrime can only be curbed through collective action, collaboration, and continuous knowledge sharing.

In Hungary, there is a significant intention-action gap between cybersecurity knowledge and digital behaviour. 46% of users cannot distinguish real messages from service providers or merchants from fraudulent ones. Younger generations tend to overestimate their security awareness due to their confidence in digital technologies. Although 90.5% of 18-29-year-olds believe they are difficult to deceive, their average score on a 10-question digital security test was only 1.5 out of 4. Interestingly, the older the respondent, the less confident they feel in their preparedness against digital fraud—yet older age groups actually performed better in the test.

The increasing number of successful fraud attempts and other cybercriminal activities pose a serious reputational risk, threatening the very trust on which online commerce and digital payment ecosystems are built. Among small and medium-sized enterprises that fall victim to cyberattacks, 60% cease operations within six months due to the damages suffered. Currently, the public sector faces the highest level of threat from cybercriminals, while threats to the healthcare sector have decreased. However, the technology sector has become increasingly targeted since the pandemic.

We explore how automation and AI have transformed the threat landscape, enabling attackers to launch high volumes of sophisticated attacks. The analysis reveals the changing nature of cybercrime, with criminals collaborating and innovating to launch more effective attacks. The study emphasizes the need for information sharing and collaboration across sectors to enhance cybersecurity resilience. Practical recommendations for improving cybersecurity education and awareness are also provided, stressing the need for a collective effort to protect our digital ecosystem. The Age of Cybercrime 2025 document is a crucial resource for understanding the current cybersecurity landscape and offering actionable insights for market players to strengthen their cybersecurity strategies and resilience. Let us take these insights and turn them into action to safeguard our digital future.

Hungarian e-commerce growth is now driven by imports

In 2024, based on measurements by PwC for Q1-Q3 and preliminary data for Q4, the total Hungarian e-commerce market could reach a sales volume of 1 920 billion HUF with a 15% growth in volume, of which 17% – around 330 billion HUF – is generated by import retail. Imports have also clearly become a driver of growth in 2024, as the Hungarian online retail sales have only managed to grow by 10%. According to the latest edition of PwC’s Digital Retail Landscape report, produced in partnership with the Digital Commerce Alliance, a quarter of online orders are delivered to shoppers via parcel lockers, and Temu has become the e-retailer with the largest customer base and order numbers of 2024.

Competition in the shadow of the global giants
is getting more and more intense

The Hungarian e-commerce market has undergone such a transformation in 2024 that is unprecedented in the sector’s nearly 25 years of existence in Hungary. The driving force behind the development of e-commerce is no longer Hungarian and EU retailers, but cross-border, import-based businesses. Therefore, now when speaking about the „Hungarian e-commerce market” it is important to clarify what we mean by „market”.

„Just a few years ago, the Hungarian e-commerce market consisted almost exclusively of EU retailers (with a Hungarian side and often a local team) operating in Hungary or considering Hungary as a strategic market. In addition to Hungarian e-retailers, international retailers have for a long time been a relevant source of supply for a small, clearly identified group of customers. However, shopping abroad has now also become a competitive alternative for Hungarian retailers in terms of shopper experience, speed and service levels.”

– was the key finding of the Digital Retail Landscape highlighted by Norbert Madar, Head of PwC’s Digital Commerce team and Vice President of the Digital Commerce Alliance.

Imports are now driving the e-commerce market

The growth rate of e-commerce followed that of total retail trade in 2022 and 2023, failing to accelerate significantly mainly due to the distraction of high inflation and downtrading. This trend changed notably in 2024. With the launch of import trade, e-
commerce in Hungary has become a two-polar economy, as competition between Hungarian and import e-commerce is the defining ecosystem. Although full data is only available for the first three quarters*, PwC estimates that the total market could end 2024 with total aggregate sales of around 1 920 billion EUR, with a 15% annual growth rate. Of this total, Hungarian and EU retailers account for around 1 600 billion HUF, with a 10% increase, to which import e-commerce – dominated mainly by Temu – adds another 330 billion HUF.

„Temu’s high-level operating model – fast delivery, easy product returns and always-on customer service – has also raised customer expectations, and the Hungarian retailers are trying to compete by improving service levels beyond promotions (e.g. wider, faster logistics).”

– added Ildikó Cserjés-Kopándi, PwC Hungary’s e-commerce expert.

Hungarian retailers under pressure

The price sensitivity of Hungarian shoppers and the favourable prices and service levels of global players are putting pressure on Hungarian retailers, requiring technological developments, innovative strategies and increased marketing efforts. As
demonstrated by the success of Temu, shoppers are increasingly making value for money choices, while fast delivery and convenience have also become a key requirement.

In addition to increased regional and international competition, the market has already become turbulent in terms of product categories: while FMCG and beauty care sectors continue to show significant growth (+24% and +23% respectively), sales volumes in categories such as clothing, home furnishings and DIY have declined, mainly due to price pressure from imported products and changing shopping habits.

According to the e-retailers surveyed, the biggest challenges for online retailers in their home country are attracting new customers (48%), increasing shopping frequency (39%) and lack of capital (35%). Increasing competition from abroad and market penetration (27%) is continuing to put pressure on the Hungarian players.

„Hungarian e-retailers need advanced services, technological innovation and a high level of customer experience to compete with global and regional players”

– Szabolcs Timár, industry expert at PwC and lead analyst of the research series, has evaluated the biggest problems retailers face.

2024 was also the year of Temu in Hungary

Following the trends across Europe, Temu has become one of the largest e-retailers in Hungary in less than a year. The Chinese market has generated more than 9 million completed orders by 2024, according to industry measurements based on PwC’s parcel logistics data services. For this, based on online shopper surveys, it generated a sales volume of around 110 billion HUF, with an active customer base of 1.8 million.

Although Temu 2024 lost some momentum in the last months of the year – due to both rising prices and the falling exchange rate – its aggressive marketing campaign not only attracted customers, but also increased their shopping frequency throughout the year. Favourable prices allowed shoppers to buy more products for the same budget, which in turn led to increased shopping activity.

According to data published in the Digital Retail landscape, a third (34%) of online shoppers and almost half (47%) of people aged 18-29 have the Temu app on their phone. 77% of respondents chose to buy here because of the cheaper, more
affordable prices, but there is also a significant proportion of those who preferred them because of the wider choice, the simple shopping process and the website that is available in Hungarian.

As the app has spread, Temu has gradually lost advertising intensity, as evidenced by the latest Growww Digital Temu Index presented in Digital Retail Landscape. Data based on ad spending shows that the Chinese giant’s advertising presence in Hungary is still significant, but it is steadily decreasing month by month, with a 29% fall in January 2025 compared to January 2024. This means that Temu has reduced its advertising intensity by almost a third compared to the level of a year ago.

„Hungarian e-retailers have two possible visions for the future in an era of e-commerce dominated by global giants: to remain a Hungarian, local player in the national market, or to grow into a regional retailer using the tried and tested concept. The Czech and Polish operators have been on the path of expansion for years, and we are seeing the results and success of this here at home.”

– László Szabó, managing partner of the digital marketing agency Growww Digital, summarised the potential opportunities.

Regular customers who order at least monthly
account for around three quarters of orders

The currently active 4.2 million Hungarian online shopper base can be divided into three groups: those who rarely shop (31%), ad hoc shoppers (38%) and regular shoppers (31%). In parallel with the rapid growth in the customer base, the frequency of shopping declined slightly last year. However, the 31% of regular shoppers who bought online at least monthly made up the majority of sales volumes – around 75% of parcel volumes – in 2024.

In recent years, Hungarian shoppers have also become more conscious of the economic pressures and high inflation. The Digital Retail Landscape reveals that 54% of respondents consider where to shop and 36% often wonder whether they really need to buy a particular product. The average basket value remained stagnant during 2024, indicating a further increase in price sensitivity in an improving inflation environment that is still high compared to previous years.

„Hungarian shoppers have become much more aware in recent years, and this is transforming the way how the e-commerce market works. Increasing awareness is not only a challenge, but also an opportunity for retailers to keep their shoppers with more creative offers and a better customer experience. Customer segmentation, loyalty programmes that entitle customers to premium services, Buy Now Pay Later solutions with deferred payment schemes, and innovative services such as parcel lockers and same-day or guaranteed next-day delivery are all intended to keep customers and encourage frequent shopping.”

– emphasised Antal Kerekes, Head of the Technology Advisory Business at PwC Hungary.

Technological improvements to boost the shopping
experience

The key to the e-commerce shopping experience clearly lies in technological innovation, with one important area being the payment of orders. According to the Digital Retail Landscape, 39% of online shopping was done with pre-payment (credit card or other digital payment), while the proportion of cash-on-delivery transactions was 61%.

„In 2024, the proportion of prepayments has increased even more: already 4 out of 10 online orders are prepaid by Hungarian customers. Thanks to technological developments such as stored value and mobile wallet payments, online card payments are increasingly being used instead of cash on delivery.”

– indicated László Szetnics, member of the DKSZ board, responsible for digital payments at Mastercard Hungary.

In terms of how orders are picked up, in 2024 the spread of parcel lockers will be in a new stage: last year, Hungarian shoppers placed one in four e-commerce orders in parcel lockers, partly due to the fact that the number of lockers in 2024 almost doubled compared to 2023, rising to nearly 9 000 in four years.

Strengthening Hungarian digital trading is also important for the national economy

Summarising the findings of the Digital Retail Landscape, Pál Bíró, President of DKSZ (Digital Commerce Alliance of Hungary) and Head of Google Hungary, pointed out that although there are more positive trends in early 2025, there is still a lot of international and regional pressure in e-commerce and therefore it is important to support and strengthen the competitiveness of Hungarian retailers:

„2024 has shown that the Hungarian e-commerce market needs to adapt to changing, globalising conditions, but that rapid response and continuous improvement are essential for long-term success. For Hungarian businesses, following international trends, adapting to customer needs and expanding regionally are the keys to survival and growth. In order to achieve this, it is of utmost importance from the professional, federal and governmental sides to show the way and help the ecosystem to grow stronger through education, training, support and mentoring programmes. As part of this, the DKSZ Mentor Programme will be launched in 2025, while we are also working on creating further training opportunities.”