Niki Luhur, Founder and Group CEO of VIDA
A recent whitepaper from digital identity solutions provider VIDA revealed that 100 per cent of surveyed businesses in Indonesia are concerned about the growing threat of AI-generated fraud such as deepfakes. However, 46 per cent 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 survey dubbed this development as a “ticking time bomb.”
“It shows that despite widespread awareness, nearly half of businesses remain vulnerable due to insufficient knowledge. This blind spot is exactly what fraudsters exploit, using AI to bypass outdated security measures with ease,” it stated.
The paper also highlighted Surfshark’s latest finding, which put Indonesia in 13th place globally for data breaches—the highest in Southeast Asia (SEA). It stressed the “critical need” for improved cybersecurity.
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The whitepaper titled “Where’s The Fraud: Protecting Indonesian Businesses from AI-Generated Digital Fraud” outlines the rising threat of four key types of digital fraud affecting businesses in Indonesia: AI-generated fraud, social engineering, account takeovers, and document and signature forgery.
It delves into how these fraudulent activities impact various industries, including banking, fintech, consumer financing, insurance, and healthcare.
According to VIDA’s findings, identity fraud, particularly driven by AI and deepfakes, has affected 56 per cent of businesses in Indonesia. This fraud compromises data security and undermines customer trust, necessitating stronger preventive measures.
Social engineering fraud is also on the rise, with phishing, smishing, and vishing affecting 67 per cent, 51 per cent, and 47 per cent of businesses, respectively, revealing a need for heightened cybersecurity and public awareness.
Account takeovers have emerged as a critical concern, with 97 per cent of businesses reporting hacking attempts, particularly in finance and e-commerce sectors.
Document and signature forgery continues to cause reputational harm, with 96 per cent of businesses encountering fraudulent cases, leading to financial losses and decreased customer confidence. VIDA’s whitepaper emphasises the need for robust fraud detection and prevention systems to safeguard against these growing threats.
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“As technology becomes more sophisticated, businesses must proactively protect their customers, operations, and reputations in this rapidly changing digital environment. In a press statement, ” an integrated anti-fraud solution not only enhances security but also builds lasting customer trust,” said Niki Luhur, Founder and Group CEO of VIDA.
PT Indonesia Digital Identity (VIDA) is a leading electronic certification provider authorised by the Indonesian Ministry of Communication and Information Technology.
Established in 2018, VIDA offers various digital identity services, including electronic signatures, multi-factor authentication, and verified identity solutions, all supported by electronic certificates.
In response to the growing risks of digital fraud, VIDA has introduced its Identity Stack, a comprehensive solution to secure online transactions in Indonesia. This service aims to reduce identity fraud by up to 99.9 per cent, protecting businesses while maintaining a seamless user experience.
The Identity Stack supports business processes by integrating advanced identity verification and fraud detection tools.
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Image Credit: VIDA
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