Financial Crime World

Indonesians Wake Up to Mounting Financial Scams: Identity Theft and Real-Time Payment Frauds on the Rise

Key Findings from FICO’s Global Consumer Fraud Research

  • Indonesia’s digital economy witnesses a surge in financial scams and frauds.
  • Identity theft is the foremost concern for Indonesians.
  • Significant disconnect between perception and reality regarding identity theft.
  • Real-time payment scams pose another growing threat.
  • Fraud protection is a top priority for Indonesian consumers.

Identity Theft: Perception vs. Reality

According to FICO’s latest global consumer fraud research:

  • 36% of Indonesians are worried about identity theft.
  • 45% believe they haven’t been victimized.
  • Yet, 3% have experienced identity theft, leading to financial accounts opened in their names.

Real-Time Payment Scams: Unwitting Victims and Unreported Losses

  • Last year, 64% of Indonesians were exposed to unsolicited, potentially fraudulent communications.
  • 49% knew someone who fell victim to a scam.
  • 17% of these victims unknowingly made real-time payments for nonexistent goods, services, or investments.
  • Financial losses were significant: 71% lost up to 5 million rupiah; 4% endured losses of up to 100 million rupiah.
  • Only 19% of victims reported their losses to their banks.

Priorities for Selecting a Financial Services Provider

A survey commissioned by FICO revealed that:

  • Ease of use and good fraud protection are the two most critical factors.
  • These factors surpass other considerations, such as customer service or strong anti-money laundering policies.

Rapidly Adopting Real-Time Payments: A New Era of Fraud Threats

As real-time payment adoption quickens in Indonesia, concerns about the irrevocable nature of these transactions and growing criminal threats intensify. Financial institutions must:

  • Invest in advanced solutions to safeguard clients from scams.
  • Integrate scam-specific analysis and scoring into transactions.
  • Preemptively detect and thwart fraudulent payments.

Research Methodology

The FICO survey was conducted in November 2023:

  • Involved 1,000 Indonesian adults.
  • Approximately 12,000 respondents in other countries, e.g., Canada, the US, Brazil, Colombia, Mexico, India, Malaysia, the Philippines, Singapore, Thailand, the U.K., and Spain.

Media Contact

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About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world perform better. We are a leading analytics software company, using our innovations to address a diverse range of customer, compliance, and risk challenges in numerous industries, including banking, healthcare, insurance, and retail. For more information, visit www.fico.com.