The true cost of Indonesian fraud is rising. For every fraudulent transaction, the cost to Indonesian businesses is 3.25 times the amount of the lost transaction value. This translates to fraud costs amounting to 1.66% of overall annual revenue.
As businesses in Indonesia offer more channels and serve customers across a wider geographic area, the challenges continue to rise. To tackle the widespread problem, organizations must stop the rise of synthetic identities, balance the speed of approval against customer friction and simultaneously hold back the volume of malicious botnet orders. And, they must achieve all these goals at a time when customer identity verification remains a challenge.
With the rapid rise of e-commerce and m-commerce in Indonesia, coupled with prevalence of alternative payments and the expansion of cyberattacks threatening to sabotage fraud protection, single-point fraud protection is no longer an inadequate response. Organizations should tap into a multi-layered fraud defense strategy that integrates a spectrum of technology tools like transaction scoring, identity verification, active ID authentication, digital identity risk assessment, behavioral biometrics and more.
When used effectively, these tools have the capability to authenticate both digital and physical criteria as well as identity and transaction risk. By benchmarking your fraud defenses against current threats, the true cost of Indonesian fraud can be lowered in impact.
To find out more about safeguarding your businesses in Indonesia from insidious threat with a robust fraud and security technology platform, download the infographic or access the LexisNexis® Risk Solutions 2019 True Cost of FraudTM study.