The Financial Services Authority (OJK) in Indonesia has stated that tracking funds involved in fraud becomes increasingly difficult when those funds are moved into cryptocurrencies.

According to Mohammad Ismail Riyadi, Head of the Department of Financial Literacy, Financial Inclusion, and Communications at OJK, scammers typically divert money into crypto to make it harder for authorities to trace.

Fraudulent Funds Often Diverted to Crypto to Avoid Detection

Riyadi explained that scammers often split the stolen money across several bank accounts before eventually transferring it into cryptocurrencies. This tactic prevents tracking and allows scammers to obscure their tracks.

One notable example involved a victim losing IDR 330 million, but fortunately, they acted quickly and contacted the Indonesia Anti-Scam Centre (IASC) to block the scammer's bank account.

IASC Saves Millions by Blocking Fraudulent Accounts in Indonesia

From November 2024 to March 2025, the IASC blocked 40,445 scammer accounts and saved IDR 137 billion from 98,713 reports of fraud. The fast actions by the IASC have helped reduce further financial damage.

Despite these efforts, OJK officials mentioned that the recovery rate in Indonesia is still behind that of other countries like Singapore and Malaysia.

Speed in Reporting Key to Combatting Financial Fraud in Crypto

Riyadi stressed the importance of reporting fraud quickly to prevent further loss. If people share sensitive information such as One-Time Passwords (OTPs), they are at high risk of falling victim to fraud.

Riyadi urged the public to contact IASC promptly if they suspect any fraudulent activities.

PHOTO: UNSPLASH

This article was created with AI assistance.