FICO publishes research about Indonesian fraud concerns

FICO, a global analytics software firm, published its global consumer fraud research, showcasing the concern of Indonesians over identity theft amidst the escalating risks presented by real-time payments. The study reveals that identity theft (36%) remains the predominant worry among Indonesians, exposing individuals to various risks, including financial loss, compromised credit scores, and the arduous process of restoring financial integrity.

In contrast, concern over authorised push payment scams is less pronounced in Indonesia compared to other ASEAN countries and India. According to the research, only 28% of Indonesian respondents expressed worry about authorised push payment scams, significantly lower than the Asia average of 33%.

Perception versus reality

Despite widespread concern about identity theft, there is a noticeable dissonance between perception and reality among Indonesians. About 45% believe it unlikely they've been a victim, while 21% see it as possible, and 16% are confident their identity remains untouched.

Identity theft reports among Indonesian respondents decreased to 3% from 10% in 2022. Despite this decline, it still affects over 6 million individuals. In comparison, higher rates were observed in India (13%) and Thailand (12%).

The growing threat of real-time payment scams

FICO's 2023 research highlighted a concerning trend in Indonesia regarding authorised push payment (APP) fraud and real-time payments. 64% of respondents received scam attempts, with 49% knowing victims, underscoring the prevalence of scams amid the rise of real-time payments.

Shockingly, 17% of respondents admitted to sending real-time payments for investments, goods, or services they never received. Additionally, 71% of those who made scam payments through real-time payments lost up to USD 314, while 4% experienced losses of up to USD 6287. Despite these figures, only 19% reported actual or suspected losses to their banks.

Indonesians prioritise good fraud protection

Respondents prioritise ease of use and robust fraud protection when selecting a financial provider, considering them more crucial than other factors such as customer service or environmental policies. This emphasis on security underscores the growing concern over financial fraud.