Indonesia’s Financial Sector Rocked by Fraudsters, Survey Reveals
Identity Theft Remains Top Concern Among Indonesians
A recent survey conducted by global analytics software firm FICO has highlighted concerns about financial fraud in Indonesia, with a staggering 36% of respondents fearing that their identity could be used to open a financial account without their knowledge. The study reveals that identity theft remains the biggest worry for many Indonesians.
Perceived Risk vs. Reality
According to the research, nearly 45% of respondents believe it is unlikely they have been a victim of identity theft, while 21% see it as possible and 16% are confident their identity remains untouched. However, despite this perceived lack of risk, millions of Indonesians remain vulnerable to identity theft, with over 6 million individuals reporting that their stolen identity has been used to open a financial account.
Real-Time Payment Scams on the Rise
The survey also highlighted the growing concern about real-time payment scams in Indonesia, with:
- 64% of respondents receiving unsolicited communications that they believed were part of a scam
- 49% of respondents reporting knowing someone who had fallen victim to a scam
- 17% admitted to sending real-time payments for goods or services they never received
Importance of Robust Fraud Detection and Prevention Measures
“Banks must invest in cutting-edge solutions to tackle the surge in scams, particularly with the swift uptake of real-time payments in the Asia-Pacific financial landscape,” said C K Leo, FICO’s lead for fraud, security and financial crime in Asia Pacific.
Top Considerations When Selecting a Financial Provider
The survey found that ease of use and good fraud protection are the top considerations for Indonesians when selecting a new provider for a financial account. Even in Indonesia, where good fraud protection was less likely to be people’s number one concern, 63% of respondents ranked it as a top three consideration.
Conclusion
FICO’s study highlights the importance of robust fraud detection and prevention measures to protect consumers from financial loss and identity theft. As real-time payment adoption continues to grow rapidly in Indonesia, it is crucial for financial institutions to take proactive steps to prevent fraudulent activities and maintain trust among customers.