For every fraudulent transaction, the cost to Indonesian businesses is actually 3.25 times the amount of the lost transaction value. This translates to fraud costs amounting to 1.66% of annual revenues overall. As Indonesian businesses offer more channels and serve customers across a wider geographic area, the threat of identity fraud has been a costly and complex challenge to tackle.
Our summary of the 2019 LexisNexis® Risk Solutions True Cost of FraudSM
Study for Indonesia provides a comprehensive overview of the current state and cost of identity fraud. Built with research gathered from executives representing a wide range of industries, the study delivers a snapshot of how identity fraud has proliferated across Indonesia and explores the direct cost and operational impacts. The study illustrates an in-depth view of the transaction channels and payment methods that pose the greatest identity fraud risks and details the challenges many businesses face when combatting identity fraud. The study also highlights how a multi-layered technology strategy strengthens identity fraud prevention efforts and lowers costs.
Our study covers the market factors contributing to the increase of fraud in Indonesia, such as:
- The rapid rise of e-commerce and m-commerce
- Sizeable underbanked population and the prevalence of alternative payment methods
- Expansion and frequency of cyberattacks
The study also details common challenges facing Indonesian businesses:
- Verification of customer identity
- Differentiating between legitimate transactions and bot activity
- Safely conducting international transactions
- Balancing fraud prevention with the customer experience
An important highlight from our 2019 True Cost of Fraud Study centers around the imperative for businesses to authenticate both digital and physical criteria as well as identity and transaction risk. To successfully accomplish this objective, businesses must incorporate a multi-layered fraud defense strategy that integrates a variety of technology tools to support:
- Velocity checks
- Transaction scoring
- Identity verification
- Active ID Authentication
- Digital Identity Risk Assessment
- Behavioral Biometrics
Our study highlights the types of multi-layered fraud prevention solutions businesses in Indonesia are taking advantage of to reduce false positives and lower cost impacts.
Find out how your business compares and benchmark your fraud defenses against the current fraud climate in Indonesia. Gain industry insights and proof points to set a new strategy to effectively combat fraud with tips from the LexisNexis® Risk Solutions True Cost of FraudSM
Study for Indonesia. Explore the full study now.