36% of Indonesians are concerned about
fraudsters using their identity to open a financial account
(NYSE: FICO)
Highlights
- Identity theft worries persist, with 36% of Indonesians fearing
fraudsters opening accounts
- A noticeable gap exists, as almost 45% believe it unlikely
they've been identity theft victims
- Real-time payment scams are on the rise, with 64% receiving
scam communications
- Fraud protection is paramount, with ease of use and good fraud
protection ranking as top considerations for selecting financial
services providers
FICO, a leading global analytics software firm, today unveiled
its latest global consumer fraud research, spotlighting the
enduring concern of Indonesians over identity theft amidst the
escalating risks posed 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 authorized push payment scams is
notably less pronounced in Indonesia compared to other ASEAN
countries and India. According to the research, only 28% of
Indonesian respondents expressed worry about authorized push
payment scams, significantly lower than the Asia average of
33%.
More information:
https://www.fico.com/en/latest-thinking/ebook/consumer-survey-2023-digital-banking-customer-preferences-and-fraud-controls
“This disparity can be attributed to Indonesia's recent
introduction of real-time payment mechanisms in January 2022,
limiting the exposure of Indonesian consumers to such scams, unlike
their counterparts in other regions where real-time payments are
more established,” said C K Leo, FICO's lead for fraud, security
and financial crime in Asia Pacific. “However, as real-time
payment adoption grows rapidly, there is a growing risk of
authorized push payment fraud, underscoring the importance for
financial institutions to implement robust fraud detection and
prevention measures swiftly.”
Perception vs. 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.
Moreover, only 3% of Indonesian respondents reported their
stolen identity being used to open a financial account, a decline
from nearly 10% in 2022. However, given Indonesia's adult
population, this 3% translates to over 6 million individuals.
Interestingly, this rate was much higher in other countries
surveyed, with 13% of Indians and 12% of Thais saying their
identity had been stolen and used to open an account by a
fraudster
“While some may downplay the risk of identity theft in
Indonesia, millions remain vulnerable,” added Leo. “This
underscores the need for heightened awareness and proactive
measures. By breaking down silos and integrating identity
verification and fraud detection processes, we can streamline
applications and bolster trust in legitimate customers.”
Real-Time Payment Scams: A Growing Concern
As the incidence of scams continues to rise, FICO’s research
from last year uncovered a troubling trend concerning authorized
push payment (APP) fraud and real-time payments in Indonesia. 64%
of Indonesians have received unsolicited text messages, emails,
phone calls, or other outreach that they believed to be part of a
scam, while 49% of respondents stated that their friends or family
members had been victims of a scam.
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 5 million rupiah, while 4% experienced losses
of up to 100 million rupiah. Despite these alarming figures, only
19% reported actual or suspected losses to their banks.
"Banks now face a crucial moment to invest in cutting-edge
solutions to tackle the surge in scams, particularly with the swift
uptake of real-time payments in the Asia-Pacific financial
landscape,” said Leo. “The irrevocable nature of these
transactions has led to new criminal threats. By integrating
scam-specific analysis and scoring into transactions, along with
robust decision-making capabilities across the customer journey,
banks can preemptively detect and thwart scam payments, sparing
customers from financial harm. Furthermore, while some consumers
may ignore warnings, the majority will heed alerts and refrain from
making real-time payments if alerted to potential scams."
Indonesians Prioritise Good Fraud Protection
When asked about the most important considerations respondents
have when they select a new provider for a financial account, ease
of use and good fraud protection were the two most important. These
were both considered significantly more important than good
customer service, strong anti-money laundering policies, sound
green/environmental policies, ethical use of customer data,
behaving fairly, and good value for money.
Even in Indonesia, where good fraud protection was less likely
to be people’s number one concern, 63% of people had ranked it as a
top three consideration.
The survey was conducted in November 2023 by an independent
research company adhering to research industry standards. 1,000
Indonesian adults were surveyed, along with approximately 12,000
other consumers in Canada, U.S, Brazil, Colombia, Mexico, India,
Malaysia, Philippines, Singapore, Thailand, U.K. and
Spain.
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version on businesswire.com: https://www.businesswire.com/news/home/20240327366269/en/
Lizzy Li RICE for FICO +65 9034 7768 lizzy.li@ricecomms.com
Saxon Shirley FICO +65 9171 0965 saxonshirley@fico.com
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