Cases of fraud have become a growing concern across various sectors, both in business and government environments. In the economic context, fraud refers to deliberate acts committed to gain personal or group financial benefits through unlawful and unethical practices that harm others. Fraud can have a profound impact on companies, clients, investors, and the broader economy.
Dr. Arika Artiningsih, lecturer at the Department of Accounting, Faculty of Economics and BusinesBusiness and Government Sectorss, Universitas Gadjah Mada (FEB UGM), explained that fraud involves deceptive actions aimed at obtaining illicit gains.
It may take the form of false representation, deceit, or unfair manipulation to mislead victims.
“Fraud has distinctive characteristics. It involves deception, is carried out deliberately, is concealed, and causes losses,” the lecturer said at FEB UGM on Thursday, Oct. 23, 2025..
In a session titled “Investigating Fraud: The Role of Journalists in Exposing Deception and Protecting the Public,” Dr. Artiningsih elaborated that fraud practices generally include corruption, asset misappropriation, and financial statement fraud.
According to the 2024 ACFE Occupational Fraud Report, the most common form of fraud globally is asset misappropriation, accounting for 89 percent of cases, although it typically results in relatively small losses.
In contrast, financial statement fraud is the least frequent but causes the largest average losses, reaching USD 766,000 per case.
“In Indonesia, the ACFE survey shows that corruption cases dominate, while asset misappropriation, often committed by public officials, is categorized as a form of corruption,” she explained.
According to Dr. Artiningsih, there are no specific demographic or psychological characteristics that define a fraud perpetrator.
Fraud can be committed by anyone, making it difficult to predict which employees, vendors, clients, or customers may act dishonestly.
The longer an individual works within an organization, the more familiar they become with its system loopholes, increasing the potential for misconduct.
“Most fraud cases involve collusion, with multiple perpetrators influencing others to participate,” she revealed.
Despite these alarming trends, Dr. Artiningsih emphasized that several early warning signs, or red flags, can be detected and monitored.
These include accounting anomalies, weak internal control systems, lifestyles inconsistent with income, and suspicious complaints or reports.
“Some notable examples include the manipulation of Garuda Indonesia’s financial reports and the counterfeit gold stamping case at ANTAM,” she noted.
In such situations, Dr. Artiningsih stressed that journalists play a crucial role in maintaining integrity in reporting fraud cases.
She reminded that coverage should always adhere to the Journalistic Code of Ethics, upholding the presumption of innocence, using neutral terminology, ensuring balanced sources, rejecting any form of gratification, and protecting the identities of whistleblowers.
“Clear and educational language in reporting is essential to help the public understand fraud schemes without being judgmental,” she added.
Reporter: FEB UGM/Kurnia Ekaptiningrum
Author: Agung Nugroho
Post-editor: Lintang Andwyna
Photographs: Kompas and FEB UGM