Over Half of Indonesian Businesses Are Victims of Digital Fraud: How to Respond

The rapid growth of Indonesia's digital economy has significantly boosted its financial and trade sectors. However, this progress has also led to a surge in digital fraud, posing serious threats to businesses across the country.

According to the Fraud Typologies Whitepaper by GBG, a global leader in fraud and compliance technology, over 56% of Indonesian businesses have fallen victim to digital fraud. The most prevalent form is Synthetic Identity Fraud, where criminals combine real and fake data to create new identities. This practice severely impacts business credibility and data security.

The Rising Threat of Sophisticated Fraud

Fraud schemes in Indonesia have grown more complex, involving tactics like phishing, smishing, and AI-driven identity theft. Bernardi Susastyo, GM Asia and Fraud APAC at GBG, highlighted the urgency for businesses to adopt advanced fraud detection systems. "Traditional verification methods are no longer sufficient. Companies must stay ahead by utilizing tools like AI and machine learning," he stated.

The report also noted that social engineering attacks affected 67% of businesses last year, emphasizing the need for enhanced awareness and preparedness.

Three Key Steps to Prevent Digital Fraud

GBG’s whitepaper outlines actionable steps for businesses to combat digital fraud effectively:

1. Adopt AI and Machine Learning for Identity Verification
2. Advanced technologies can detect subtle behavioral patterns, helping businesses identify and prevent fraudulent activities more effectively.
3. Educate Teams on Social Engineering Threats
4. Phishing and smishing remain major threats, requiring continuous training and awareness programs for employees.
5. Implement Continuous Fraud Monitoring
6. Real-time monitoring systems enable businesses to detect and address suspicious activities early, reducing potential losses.

A Proactive Approach to Fraud Prevention

Fraud prevention strategies must be tailored to regional trends, ensuring proactive rather than reactive measures. Bernardi emphasized that organizations leveraging AI-driven solutions can better safeguard their data and reputation. The launch of GBG's whitepaper aims to equip Indonesian businesses with the insights needed to fortify their defenses.

As Indonesia's digital landscape evolves, businesses must remain vigilant and adaptive to emerging fraud tactics. Investing in advanced technologies and robust training programs will be key to mitigating risks and fostering a secure digital economy.