FICO Survey: Despite Rising Real-Time Payment Risks, Indonesians Remain Vigilant Against Identity Theft

Key Highlights:

  • Persistent Identity Theft Concerns: 36% of Indonesians express worry about fraudsters opening accounts using their identity.
  • Perception Reality Gap: Nearly 45% believe it’s unlikely they’ve been victims of identity theft, revealing a disconnect.
  • Rising Real-Time Payment Scams: 64% have encountered scam communications, indicating a growing concern.
  • Priority on Fraud Protection: Ease of use and robust fraud protection rank highest when selecting financial service providers.

FICO, a prominent global analytics software firm, has released its latest findings from a consumer fraud research study, shedding light on Indonesian concerns regarding identity theft amid the increasing risks associated with real-time payments. The research underscores identity theft (36%) as the predominant worry among Indonesians, exposing individuals to potential financial loss and compromised credit scores.

In contrast, concerns about authorized push payment scams are notably lower in Indonesia compared to other ASEAN countries and India. Only 28% of Indonesian respondents express worry about such scams, attributing this disparity to the recent introduction of real-time payment mechanisms in the country.

However, there’s a perceptible dissonance between perception and reality among Indonesians regarding identity theft. While 45% believe they are unlikely to fall victim, the research reveals that 3% have reported stolen identities being used to open financial accounts, affecting over 6 million individuals in Indonesia.

Moreover, the incidence of real-time payment scams is on the rise, with 64% of respondents encountering fraudulent communications. Shockingly, 17% admit to sending payments for goods or services they never received, with significant financial losses reported.

The study emphasizes the importance of robust fraud detection and prevention measures, especially as real-time payment adoption accelerates. Banks are urged to invest in cutting-edge solutions to tackle the surge in scams, integrating scam-specific analysis and scoring into transactions to preemptively detect and thwart fraudulent activities.

In selecting financial service providers, Indonesians prioritize ease of use and good fraud protection. These factors are deemed significantly more important than other considerations such as customer service or environmental policies.

The survey, conducted in November 2023, involved 1,000 Indonesian adults and approximately 12,000 consumers across various countries, providing valuable insights into consumer perceptions and behaviors regarding fraud and financial services.

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