Digital fraud cases in Indonesia have once again drawn public attention following the latest report from the Indonesia Anti-Scam Center (IASC), which stated that losses from digital crime reached approximately Rp9.1 trillion, based on 432,637 reports between November 22, 2024, and January 11, 2026. The figure not only reflects the magnitude of financial losses experienced by the public but also raises concerns about its potential impact on the development of Indonesia’s rapidly growing digital economy.
A lecturer at the Department of Economics and Business, Vocational College of Universitas Gadjah Mada (SV UGM), Yudistira Hendra Permana, Ph.D., believes that such significant losses could influence public perceptions of the security of digital transactions.
According to him, the widespread reporting of large-scale fraud cases may alter how people perceive risks in digital economic activities. He explained that when fraud cases increasingly appear in public discourse, risk-averse individuals may begin to view digital transactions as more dangerous than before.
“With the scale of fraud cases being reported, people who are risk-averse will no longer see the risk of digital transactions as a small possibility, but rather as a more real and likely threat to themselves,” he said on Friday (Mar. 13).
According to Yudistira, this shift in perception could encourage people to become more cautious when conducting online transactions. Responses may include reducing the frequency of digital transactions or limiting the value of online purchases. On a broader scale, such tendencies could affect the development of the digital economic ecosystem, which heavily depends on user trust.
“When trust weakens, public participation in digital economic activities may also decline,” he added.
Yudistira emphasized that the impact is not only felt in the short term through declining transaction activity but may also influence digital economic transformation in the long run.
“In a macroeconomic context, weakening trust in digital transaction mechanisms could slow the deepening of digital finance, reduce transaction efficiency, and hinder the transformation toward a more productive and digitized economic system,” he explained.
In addition to affecting consumer behavior, the rise in digital fraud cases also creates economic consequences for companies operating in the digital sector. Yudistira said that companies must allocate additional resources to strengthen security systems to protect users from potential fraud. These efforts include developing security technologies, improving transaction verification systems, monitoring user activity, and enhancing consumer education.
Yudistira acknowledged that these consumer protection efforts may divert company resources that would otherwise be used for business expansion or innovation.
“When fraud increases, companies must allocate more resources to security systems, verification, monitoring, and dispute resolution. As a result, resources that should be used for expansion or innovation are redirected toward fraud prevention and mitigation,” he said.
Furthermore, he underlined that the rise in digital fraud also creates various indirect economic costs. When risk levels increase, users tend to become more hesitant to conduct transactions, while businesses become more cautious in operating within the digital space.
These impacts may also influence how investors perceive Indonesia’s digital economic ecosystem. This concern is particularly relevant, as Indonesia ranks second in digital fraud risk according to the Global Fraud Index.
“This ranking could become an important consideration for investors, particularly in the financial technology and e-commerce sectors. Investors not only assess the large market potential but also evaluate the security level of the digital ecosystem in maintaining user growth and transaction stability,” he said.
Yudistira explained that rising fraud risks could prompt investors to consider additional costs companies must incur to strengthen system security and manage potential disputes with users.
“When fraud risk is perceived as high, investors may assume that security costs, dispute resolution expenses, and potential reputational damage will also increase. This could lead investors to demand a higher risk premium or even push down company valuations,” he explained.
Nevertheless, Yudistira believes that these conditions do not automatically undermine Indonesia’s appeal as a digital economy market. He emphasized that the government’s and regulators’ responses will be a key factor in maintaining investor confidence.
If the government can demonstrate stronger regulations, improved digital security, and more robust consumer protection, investors may still view Indonesia as a promising market despite the current risks.
On the other hand, Yudistira also noted that the increase in digital fraud indicates the presence of increasingly organized global criminal networks. According to him, digital fraud is not part of the legitimate formal economy but rather an illegal economy that exploits formal economic infrastructures to operate.
Fraud networks often use legally established channels, such as bank accounts, payment service providers, digital platforms, and shell companies, to conceal their activities.
Moreover, the substantial losses from online fraud can be interpreted as a form of economic leakage within the national digital ecosystem. Funds that should circulate within domestic economic activities instead flow to criminal networks, including those operating across borders.
“In a broader sense, this can be considered economic leakage because part of the economic value that should circulate within the digital ecosystem instead leaves the productive domestic circulation and flows to criminal networks,” he said.
He added that when fraud proceeds are transferred to overseas accounts, converted into crypto assets, or laundered through illegal financial networks, the economic value becomes increasingly difficult to return to the formal economic system.
This phenomenon shows that addressing digital fraud requires not only stronger technological security but also improved public digital literacy and cross-border cooperation to tackle increasingly complex cybercrime networks.
Author: Zabrina Kumara
Editor: Gusti Grehenson
Post-editor: Jasmine
Photo: Freepik