JAKARTA - The rapid growth of digital financial transactions in Indonesia has encouraged the banking and fintech industries to strengthen fraud mitigation systems based on artificial intelligence (AI). In the midst of increasing digital activity, cyber criminals are assessed to be increasingly adaptive in utilizing transaction gaps, devices, and customer behavior.
Bank Indonesia data shows that the volume of digital payment transactions reached 5.15 billion transactions in April 2026, growing 42.86% year on year (yoy). Transactions through mobile banking increased 15.92%, internet banking 22.95%, while QRIS transactions jumped 108.43% yoy.
On the other hand, the increase in digital activity was followed by a spike in fraud cases. Based on data from the Indonesia Anti-Scam Center (IASC) under the Financial Services Authority (OJK), since it began operating in November 2024 to May 2026, the institution received 579,459 reports of financial transaction fraud. A total of 998,558 accounts have been reported, with 515,553 accounts blocked, and Rp638.9 billion in victim funds successfully secured.
The situation is considered to make the conventional approach to fraud management no longer adequate.
In the executive forum entitled From Compliance to Intelligence in the Era of Digital Banking Risk, M2P Fintech together with PT Reka Karya Teknologi (RKT) assessed that the financial industry needs to shift from a compliance-based approach to an intelligence-based fraud detection system and AI.
Indonesian FSI & Regulatory Practitioner, Aribowo, said fraud is no longer just an operational risk, but has become an issue related to public trust and financial institution governance.
"In the midst of digital transaction growth, fraud is no longer just an operational risk. Fraud is closely related to consumer protection, governance, and the resilience of financial institutions," he said.
Meanwhile, Banking Fraud Risk Technology Practitioner Bayu Hasdianto said that the pattern of fraud is evolving more complex, ranging from social engineering, account takeover to misuse of digital channels.
According to him, the fraud management system needs to be able to integrate various data sources such as transactions, customer behavior, devices, and digital activities to detect risks earlier.
Regulation also further strengthens this need. OJK through POJK Number 12 of 2024 requires financial services institutions to implement anti-fraud strategies that include prevention, detection, investigation, and evaluation.
Responding to this need, M2P introduced an AI-based Fraud Management System that integrates transaction monitoring, behavioral analytics, device intelligence, risk scoring, and workflow automation in one platform.
Deputy Vice President of Business Development, Product and Partnerships M2P Fintech Madhusudhan Ramakrishnan said AI not only serves to generate alerts, but also helps institutions understand the context of risk so that decisions can be made faster.
According to him, the utilization of AI and cyber security will be an important foundation for the financial industry to maintain transaction security while improving customer experience in the midst of digital economic growth.
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