Indonesia’s Banking Sector Hit by Fraudulent Transactions: New Partnership Aims to Stem the Tide
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Indonesia’s banking sector has been facing a surge in fraudulent transactions, with reports suggesting that the number of fraud incidents rose from 9,801 in 2019 to 23,000 in 2021. In response to this growing threat, TrustDecision and PT Artajasa Pembayaran Elektronis have announced a strategic partnership aimed at bolstering the integrity and efficiency of Indonesia’s financial sector.
The Partnership: Empowering Small to Medium-Sized Banks
The partnership will see TrustDecision, a leading provider of fraud detection solutions, work with Artajasa, a specialist in electronic transactions, to empower small to medium-sized banks and financial institutions in Indonesia. The goal is to equip these institutions with advanced technological tools to overcome key challenges such as:
- Technological limitations
- Lack of market-skilled resources
- Budget constraints
- Regulatory compliance challenges
Advanced Fraud Detection System (FDS)
TrustDecision’s advanced FDS has been designed to provide real-time transaction and event monitoring, multi-channel fraud prevention, and comprehensive risk management. The system leverages data from over 120 million devices, providing a massive network to track and identify common fraudsters.
The FDS is offered as a Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS), integrating seamlessly with banks’ existing systems. This solution stands as a bulwark against fraudulent activities, underpinned by expert rules and machine learning algorithms honed through years of anti-fraud experience in the financial industry.
Benefits and Vision
The partnership has already facilitated the deployment of the FDS for numerous banks, significantly mitigating fraud risks and enhancing their operational capacity. The long-term vision is to achieve widespread digital and financial inclusion across Indonesia, supporting the growth and resilience of the banking sector through continuous technological advancement and strategic collaboration.
Challenges in Combating Fraudulent Transactions
Indonesian banks face a range of challenges in combating fraudulent transactions, including:
- Technological limitations
- Lack of market-skilled resources
- Budget constraints
- Regulatory compliance challenges
The partnership aims to address these specific needs by providing cost-effective solutions that meet local and international standards.
Regulatory Compliance
The Indonesian government has also been doubling down on regulatory compliance, with all banks required to establish effective anti-fraud strategies by January 1, 2020. Regulation 39/POJK.03/2019 sets out strict guidelines for anti-fraud measures, including real-time monitoring of transactions and event monitoring.
Conclusion
The partnership between TrustDecision and Artajasa is a beacon of progress for the Indonesian financial sector, promising a safer, more efficient banking environment for all. The collaboration aims to stem the tide of fraudulent transactions, supporting the growth and resilience of the banking sector through continuous technological advancement and strategic collaboration.