Check Out Four Types Of Digital Fraud And Its Impact On Business

JAKARTA - The 'Whoe's The Fraud: Protecting Indonesian Businesses from AI-Generated Digital Fraud' report from VIDA states that there are at least four types of digital fraud that attack businesses the most in Indonesia.

The four scams are AI technology-based fraud (deepfakes), social engineering, account takeover, and document forgery and signature.

Furthermore, this research report also revealed various potential losses that can be caused by the current four main threats of digital fraud, including:

Digital Identity Fraud (Identity Fraud)

This sophisticated form of identity fraud poses a serious risk of undermining trust and increasing the potential for data loss for businesses, problems with inter-stakeholders relations, and reputational collapse. VIDA advises businesses to adopt preventive measures to address digital threats.

Social Engineering

People in Indonesia are often victims of various types of social engineering fraud. Phishing attacks have become an increasingly common threat, this case has infected 67 percent of business people in Indonesia.

Smishing, a similar threat made via SMS, has had an impact on 51 percent of business people, while screening or voter fraud has targeted 47 percent of business people.

Account Takeovers (Account Takeovers)

Account takeover arises as the most common issue, where 97 percent of business people report account hacking attempts. Industries such as finance, fintech, and e-commerce are very susceptible to exposure due to the amount of valuable information they have, such as personal data from customers.

Documents And Signature Forgery (Document and Signature Forgery)

This type of fraud not only damages the validity of data violation documents, but can damage the company's reputation, reduce customer confidence, and become the biggest cause of financial losses. Where 96 percent of business actors claim to have experienced cases of document falsification and signatures.