LATEST FINANCIAL FRAUD CASES IN INDONESIA SHOW NO SIGNS OF EBBING, ESCALATION PROJECTED

A recent study by GBG, a leading global technology specialist in fraud and compliance management, has found that the rate of financial fraud in Indonesia is on the rise, with no signs of slowing down. The “Future-Proofing Fraud Prevention in Digital Channels: an Indonesian FI Study” research projects an escalation of money mule fraud typology in 2020-21, impacting banking and finance consumers.

Financial Institutions Face Escalating Complexity and Volume of Fraud

According to the study, which surveyed 324 respondents from financial institutions across six Asia Pacific countries, including Indonesia, the country’s financial institutions are facing a battle with escalating complexity and volume of fraud and cyber-attacks. With the rise of digital usage during the COVID-19 pandemic, fraudsters are taking advantage of the situation.

Money Mule Fraud on the Rise

The study found that money mule fraud was rated as the second most impactful scam on financial institutions in Indonesia in 2019, and is forecasted to rise up to 68% in 2020-21. Additionally, synthetic and stolen ID fraud types are also experiencing high growth rates in Indonesia this year.

Mitigating Threats

To mitigate these threats, financial institutions in Indonesia are advised to prioritize the safety and security of their customers while using digital products. The study suggests that Indonesian FIs should focus on innovatively converging mobile credit risk scoring with fraud technology to bridge the lack of data.

Estimated Budget for Fraud Prevention Technology

As a result, financial institutions in Indonesia estimate a budget of USD$88.9 million to purchase new fraud prevention technology in 2020, making it the country with the third-highest budget to prevent fraud in the APAC region.

GBG’s Digital Risk Management and Intelligence Platform

GBG offers its proprietary Digital Risk Management and Intelligence Platform to help financial institutions and governments fight fraud and cyber financial crime. The platform provides end-to-end digital fraud and compliance technology that enables banking and non-banking FIs to increase online fraud detection accuracy by 30%, improving the customer experience while helping to protect vulnerable individuals.

Download the Full Report

The full report, “Future-Proofing Fraud Prevention for Digital Channels: APAC FI Study”, can be downloaded from the GBG website.