FICO Survey

Indonesian Focus on Identity Theft Persists Amidst Escalating Real-Time Payment Risks

(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-dig ...

“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