Financial Crime World

Fintech and Financial Crime Risks in Indonesia: Challenges and Mitigation Strategies

Introduction

The rapid growth of digital financial services in Indonesia has brought about significant benefits to the economy. However, this increased activity has also led to a surge in cyber threats that pose major risks to the financial sector.

Cyber Threats in Indonesia

According to data from the National Cyber and Crypto Agency (BSSN), the majority of cyber-attacks in 2020 targeted the financial sector (23%), followed by the manufacturing industry (17.7%) and the energy sector (10.2%). In 2021, Indonesia was hit with an estimated 888 million cyber threats, which is equivalent to 42 threats per second.

The Cost of Cybercrime

Cybercrime poses a significant threat to the financial services industry, resulting in estimated annual losses of over $100 billion globally. The most common types of cyber-attacks include:

  • Malware: Software designed to harm or exploit computer systems.
  • Denial of Service (DoS): Overwhelming a system with traffic to make it unavailable.
  • Trojan Activity: Hiding malware within legitimate software.
  • Ransomware: Encrypting data and demanding payment in exchange for decryption.
  • Data Leaks: Unauthorized access or disclosure of sensitive information.

Research has shown that 88% of cybersecurity breaches are caused by human error, highlighting the need for skilled and adaptable human resources in the industry. To address this challenge, it is essential to develop strategies to enhance cybersecurity and improve the quality of human resources in the financial sector.

Strategies for Mitigating Cyber Risks

A comprehensive strategy must be developed to improve the quality of cybersecurity in Indonesia’s financial services industry. This includes:

  • Expanding knowledge about the importance of cybersecurity
  • Understanding various strategies and challenges in improving security
  • Applying cyber law in the industry

Expert Insights

Experts from the National Cyber and Crypto Agency, the IT and Operations Director of PT BNI (Persero), Tbk, and a technopreneur specializing in information security will share their insights on how to mitigate these risks during an upcoming webinar. The event aims to educate representatives from the financial services industry, academia, and the general public about the importance of cybersecurity and its implementation in Indonesia’s financial sector.

Conclusion

By attending this webinar, participants can gain valuable knowledge on how to protect themselves against cyber threats and ensure the stability and security of the country’s financial system.