As digital technology evolves, more Indonesians are leveraging digital services for daily needs, such as online shopping, money transfers, and even investments. However, alongside these conveniences comes a growing threat of digital transaction fraud. Cybercriminals increasingly exploit user negligence and lack of awareness to steal personal data and money.

This article explores the various modes of digital scams predicted to become more rampant in Indonesia by 2025. It also highlights practical steps that can help individuals safeguard themselves from these threats.

Why Are Digital Transaction Scams on the Rise in Indonesia?

1. Increase in digital transactions
With over 210 million internet users in Indonesia, digital transactions are experiencing significant growth. This trend makes digital platforms a primary target for cybercriminals.

2. Lack of digital literacy
Many people still struggle to identify warning signs of scams or to secure their personal information, making them easy prey for fraudsters.

3. Advancements in fraud technology
Cybercriminals are becoming increasingly sophisticated in developing their methods, ranging from phishing schemes to malware attacks, which are often subtle and hard to detect.

Common Digital Scam Tactics

1. AI-based deepfake
Artificial Intelligence (AI) has transformed various aspects of life, including science, entertainment, healthcare, and education. Unfortunately, it also presents significant risks, particularly in the form of AI-generated fraud.

Deepfake scams, which involve fake photos, videos, voice cloning, and impersonation attempts, have surged dramatically. Between 2022 and 2023, deepfake-related fraud in the Asia-Pacific region rose by 1,540%, with Indonesia witnessing a similar increase of 1,550% during the same period.

Deepfakes can bypass identity verification systems, especially those relying on biometrics like facial recognition. Cybercriminals may use this technology to gain access to accounts or carry out illegal transactions by impersonating others.

2. Social engineering threats
Social engineering involves manipulating individuals into disclosing confidential information.

Have you ever received an SMS or WhatsApp message from an unknown number with a suspicious link? Avoid clicking on such links, as they are often a part of social engineering scams.

In Indonesia, social engineering attempts occur almost daily, with tactics like phishing, SMS phishing (smishing), and voice phishing (vishing) being the most common. These scams account for 99% of phishing attacks globally.

3. Account takeover fraud
This scam occurs when fraudsters gain unauthorized access to user accounts, such as banking, credit, e-commerce, or social media accounts.

Weak passwords and social engineering attacks are the two most common entry points for account takeovers. Globally, this type of fraud increased by 150%, while in Indonesia, 97% of businesses faced account takeover attempts in 2024.

4. Identity theft and document forgery
Identity theft and document forgery are significant threats where individuals unknowingly become legally bound to contracts they never signed. Between 2022 and 2023, identity theft and document forgery globally rose by 20%.

5. Online shopping scams
Fraudsters often offer products at suspiciously low prices on social media or fake marketplaces. Once payments are made, the products are never delivered.

6. Bogus investment schemes
Scammers exploit digital platforms to promote investment opportunities promising high returns in a short time. They use fake apps or social media groups to lure victims.

How to Avoid Digital Transaction Scams

1. Inspect links and URLs carefully
Avoid clicking on links from unknown sources. Ensure the URL includes the "https" security protocol and comes from an official website.

2. Be cautious with personal information
Never share sensitive information like PINs, OTPs, or credit card numbers, even with individuals claiming to be bank representatives.

3. Enable Two-Factor Authentication (2FA)
Activate 2FA to provide an extra layer of security against unauthorized access to your accounts.

4. Use trusted and official platforms
For online shopping or digital transactions, stick to reputable platforms with secure payment systems.

5. Beware of offers that are too good to be true
Scams often prey on victims' desires for cheap deals or quick gains. If an offer seems too enticing, verify its authenticity first.

6. Install antivirus software and keep devices updated
Use antivirus software to protect your devices from malware or viruses, and ensure your software is always updated to close security loopholes.

7. Report scams immediately
If you fall victim to or encounter a scam attempt, report it to the relevant authorities, such as the Financial Services Authority (OJK), the police, or your bank's customer service.

The advancement of digital technology has undoubtedly brought convenience to everyday life, but it also comes with risks, particularly in the form of digital transaction scams. To protect themselves, Indonesians must prioritize improving digital literacy and exercising caution during online activities.

Remember, scams can be prevented through vigilance and prudence. Never hesitate to ask questions or verify information if something feels suspicious. Together, we can create a safer and more trustworthy digital ecosystem.

Stay alert, and be a smart digital user!

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PT Bank Neo Commerce Tbk is licensed and supervised by the Indonesia Financial Service Authority (OJK) and an insured member of Deposit Insurance Corporation (LPS).