Jakarta, 6 September 2024 - A recent whitepaper from VIDA, a leading provider of digital identity solutions, reveals that 100% of businesses in Indonesia are concerned about the growing threat of AI-generated fraud like deepfakes. However, 46% of these businesses admit to having limited understanding of how this technology works, making them particularly vulnerable and less equipped to implement effective countermeasures.
The whitepaper, titled “Where’s The Fraud: Protecting Indonesian Businesses from AI-Generated Digital Fraud,” highlights four key types of digital fraud currently affecting businesses in Indonesia: AI-generated fraud (including deepfakes), social engineering, account takeovers, and document and signature forgery. The industries most heavily impacted are Banking and Fintech, Multifinance and Consumer Financing, Insurance, and Healthcare.
Adrian Anwar, Managing Director of VIDA, emphasized the urgent need for businesses to strengthen their defenses against digital fraud. “With 56% of businesses having experienced identity fraud and 96% encountering document forgery, the risks are clear. VIDA remains committed to providing advanced solutions that help businesses detect, prevent, and respond to fraud more effectively,” he said.
Niki Luhur, Founder and Group CEO of VIDA, echoed this sentiment, highlighting the importance of a comprehensive approach to fraud prevention. “As technology becomes more sophisticated, businesses must proactively protect their customers, operations, and reputations in this rapidly changing digital environment. An integrated anti-fraud solution not only enhances security but also builds lasting customer trust,” said Niki.
To address these challenges, VIDA has launched its Identity Stack, an all-encompassing solution designed to combat fraud, particularly in digital transactions in Indonesia. This solution can reduce identity fraud rates by up to 99.9%, providing effective protection for business processes while ensuring a seamless user experience.
VIDA’s whitepaper underscores the wide-reaching impact of digital fraud. In the Banking and Fintech sector, deepfakes and social engineering have led to financial losses in the millions. In the Multifinance and Consumer Financing sector, account takeovers and document forgery are serious concerns, with digital identity fraud predicted to result in over $2 billion in losses per year.
The Insurance and Healthcare sectors are also significantly affected. Document and signature forgery increases the risk of false claims, while social engineering attacks are targeting individuals to steal sensitive information. These issues not only cause financial damage but also pose serious reputational risks for businesses.
How Digital Fraud is Impacting Businesses and Consumers in Indonesia
In its latest whitepaper, VIDA measures the significant risks posed by the four key digital fraud threats, detailed below.
- Identity Fraud
With AI-driven technology and deepfakes on the rise, 56% of businesses in Indonesia have experienced identity fraud. This advanced form of theft compromises data security, erodes trust, and can lead to serious breaches that strain relationships with customers and stakeholders. VIDA urges businesses to adopt preventive measures to address these escalating threats.
- Social Engineering
Social engineering fraud, including phishing, smishing (SMS-based scams), and vishing (voice-based scams), is on the rise. According to the whitepaper, 67% of businesses in Indonesia have been affected by phishing attacks, 51% by smishing, and 47% by vishing. These statistics highlight the urgency for robust cybersecurity systems and increased public awareness to counter the threats, which exploit human vulnerability.
- Account Takeovers
Account takeovers have emerged as one of the most pervasive forms of fraud, with 97% of businesses reporting account hacking attempts. Industries such as finance, fintech, and e-commerce are particularly at risk due to the vast amounts of valuable information they handle, including customers’ personal data.
- Document and Signature Forgery
Document and signature forgery not only invalidates official records but also causes severe reputational harm and erodes customer trust. Around 96% of businesses have encountered cases of forgery, leading to financial losses and diminished confidence in business operations.
With the Identity Stack solution, VIDA believes Indonesian businesses can strengthen their defenses against these digital threats. The whitepaper has emphasized the need for advanced solutions to combat advanced threats affecting the digital world today.
Download the whitepaper now!
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