Cyber Attacks on Indonesian Banks Leave Thousands in Ruin
The Growing Problem of Cyber Attacks in Indonesia
Jakarta and Bali, Indonesia - The number of cyber attacks on banks in Indonesia has skyrocketed in recent years, leaving thousands of people like Nih Lu Putu Rustini with empty bank accounts.
A Common Story: A Farmer Loses Her Savings to Cyber Thieves
Rustini, a Balinese woman who works as a farmer, had all her savings stolen from her Bank Rakyat Indonesia (BRI) account last year. The thief accessed her account through the bank’s online platform and transferred the money to an unknown account in Java.
“I didn’t download any suspicious apps or click on any links that I shouldn’t have,” Rustini said, shaking her head in frustration. “I just want my money back.”
Thousands Affected
Rustini is not alone. Thousands of other BRI customers have reported similar incidents, with some losing as much as 1 billion rupiahs ($64,500) to cyber thieves.
Government Response: A Special Task Force
The problem is so widespread that the Indonesian government has had to establish a special task force to investigate and prosecute cybercrime cases.
Experts Say More Needs to be Done
But experts say that more needs to be done to protect online banking users in Indonesia. Ardi Sutedja Kartawidjaya, chairperson of the Indonesian Cyber Security Forum, said that 90 percent of cyber attacks against bank accounts involve customer negligence or sophisticated fraud schemes.
“Banks need to take responsibility for their customers’ security and provide better protection measures,” Kartawidjaya said.
Bank Response: More Education Needed
BRI has responded by saying that it is taking proactive measures to prevent such incidents, including providing extensive education about cybersecurity risks to its customers through social media channels and the media. However, critics say that this is not enough.
The Need for Greater Investment in Cybersecurity Infrastructure
Ni Luh Arie Ratna Sukasari, a partner with Balinese law firm Malekat Hukum, said that BRI is notorious for cyber attacks and needs to do more to protect its customers.
“Banks are supposed to serve their customers and protect their money,” Sukasari said. “If they cannot offer secure online banking, they shouldn’t be offering it - period.”
The Slow and Complex Process of Seeking Compensation
Rustini has since filed a complaint with the police and is seeking compensation through mediation. But she says that the process is slow and complex, requiring forensic digital investigative skills.
The Phenomenon is Not Unique to BRI
Experts say that the phenomenon is not unique to BRI, with almost all financial service providers in Indonesia experiencing constant cyber attacks.
Lack of Transparency: A Major Concern
Priyandita, a cybersecurity expert at the Australian Strategic Policy Institute (ASPI), said that this lack of transparency is a major concern. “Indonesia is banking on digital technology as a key driver of growth,” Priyandita said. “But cyber security is simply not the priority it should be.”
Limited Resources: A Major Hurdle
Efforts to respond to the problem are limited by resourcing, with the National Cyber and Encryption Agency having its budget cut from 2 trillion rupiahs in 2019 to 100 billion rupiahs during the pandemic.
The lack of adequate funding has hindered Indonesia’s ability to investigate and prosecute cybercrime cases. Diatmika said that he provided the police with all the details, including the name and account number of the person who stole his money. However, they told him they didn’t have any budget to travel to Java and investigate.
A Call for Greater Investment in Cybersecurity Infrastructure
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The case highlights the need for greater investment in cybersecurity infrastructure in Indonesia, as well as more effective measures to protect online banking users.
As Priyandita noted, efforts to respond to cybercrime are being made, but they are limited by resourcing and lack of priority.