Background

Online scams in Indonesia have increased in both frequency and sophistication, which has posed significant challenges for individuals, businesses, and regulatory bodies. While Indonesia’s rapid digital transformation has enhanced financial inclusion and driven e-commerce adoption, reaching 79.5 per cent of the population in 2023, it has also introduced new vulnerabilities that scammers are increasingly exploiting. These include AI-driven fraud, phishing attacks, and social engineering techniques that make it progressively harder for users to differentiate between legitimate and fraudulent interactions.

The number of scam victims continues to grow, with nearly a quarter of Indonesian consumers (23%) reporting financial losses in 2024, up from 19% the previous year. Particularly concerning is the rise in high-value scams exceeding USD 4,300 per incident, which now account for 8% of all reported cases. These figures highlight the escalating financial and emotional toll that scams are placing on Indonesian households.

In response, Indonesia has introduced a range of measures to combat online fraud, including regulatory frameworks, public awareness campaigns, and improvements in financial security systems. However, notable gaps persist. Complaint channels are fragmented, enforcement is inadequate, and digital literacy is still low among segments of the population. Scammers also continue to exploit weaknesses in cross-border enforcement, digital identity verification, and public awareness. All these underline the urgent need to enhance national resilience against scams.

To address these growing threats, the Tech for Good Institute, in collaboration with the Centre for Indonesian Policy Studies (CIPS), convened a roundtable discussion with key stakeholders from government agencies, consumer protection organisations, digital platforms, and non-profit organisations. The discussion focused on the challenges Indonesia faces in tackling scams and fraud, and explored practical solutions to build resilience within the digital economy.

Participants:

1. Heru Sutadi, Chairman of the Communication and Education, National Consumer Protection Agency (BPKN)
2. Firlie Ganinduto, Chairman, Indonesia Cyber Security & Digitalization Association (ADIGSI)
3. Imam Imroni, Project Management Officer, Indonesia Cyber Security & Digitalization Association (ADIGSI)
4. Rio Anugrah, Chairperson of the Standing Committee on Digital Infrastructure, Indonesian Chamber of Commerce (KADIN)
5. Mercy Simorangkir, Vice Secretary General, Indonesia Cyber Security & Digitalization Association (ADIGSI)
6. Prasasti Dewi, Programme Director, ICT Watch
7. Andri Kusumo, APAC Engagement Lead, Trust & Safety Global Engagement, Google APAC
8. Arena Sariatu, Regional Operations Manager, Trust and Safety Compute, Google Cloud
9. Tuaman Manurung, Sub-Coordinator on Privacy and Data Protection Regulation, Ministry of Communications & Digital (Komdigil)
10. Dahnial Apriyadi, Executive Analyst, Financial Services Authority (OJK)
11. Hafizh Nabiyyin, Head of Freedom of Expression Division, Southeast Asia Freedom of Expression Network (SAFEnet)
12. Hafiz Noer, Head of Research, Center for Digital Society (CFDS)
13. Adinova Fauri, Researcher, Centre for Strategic and International Studies (CSIS)
14. Ajisatria Suleiman, Associate Researcher, Center for Indonesian Policy Study (CIPS)
15. Gilang Ramadhan, Policy Team, Indonesia Services Dialogue Council
16. Anika Widiana, Policy Team, Indonesia Services Dialogue Council
17. Hasbi, Analyst, Financial Services Authority (OJK)
18. Andriansyah, Analyst, Indonesia Cyber Security & Digitalization Association (ADIGSI)
19. Yogi Putra, Inspector of Goods and Services, Ministry of Trade
20. Olivia Patricia, Inspector of Goods and Services, Ministry of Trade
21. Mukti Ali Pane, Inspector of Goods and Services, Ministry of Trade
22. Nabila Rizkita, Research Assistant, Center for Digital Society (CFDS)
23. Roro Mega Cahyaning Azmi Riyandani, Program Officer, ICT Watch
24. Denissa Dianita, Staff of the Deputy for Coordination of Trade and Digital Economy, Coordinating Ministry for Economic Affairs
25. Sadeq Reza, Junior Analyst – Deputy for Trade and Digital Economy Coordination, Coordinating Ministry for Economic Affairs

Key Takeaways:

1. Telecommunication Platforms as Frontline Defenders in Fraud Prevention

Online scams in Indonesia have evolved into highly sophisticated operations, leveraging AI, deepfakes, and behavioural analysis to target victims. As fraud tactics become more advanced, stakeholders emphasise that the telecommunications sector must take a more proactive role in prevention. Telkomsel, one of Indonesia’s largest operators, has begun collaborating with banks and regulators to filter phishing SMS messages, showcasing the value of cross-sector partnerships.

A rising concern involves fraudulent SIM card registrations being used to access digital wallets. This underscores the need for stricter Know-Your-Customer (KYC) protocols at the point of activation. To address these threats, telecom providers must adopt stronger number screening systems and improve in-app information sharing, offering users real-time alerts on emerging scams.

One promising initiative is a proposed multi-sector fraud alert system, where telcos would notify financial platforms automatically when suspicious activity is detected. This proactive measure could prevent significant financial losses. With their access to real-time metadata and user behaviour patterns, telecom companies are not just participants but the first line of defence. AI-powered fraud detection systems can analyse communication patterns and flag threats before harm occurs.

These measures go beyond financial fraud. They are also vital in combatting human trafficking, which increasingly relies on digital communications for recruitment. Promoting biometric multi-factor authentication creates stronger safeguards against unauthorised access, while strengthening public-private partnerships supports more effective monitoring and early warning systems across digital platforms.

2. Creating a Single Point of Contact for All Scam Victims through a National Hotline

Indonesia is taking important steps to strengthen its fraud response through the proposed National Hotline.  . It is reported that 23% of Indonesians with online banking have reported losing their money to scams via Real-Time Payment mechanism. One example is the utilisation of Indonesia QR code Payment System, QRIS, where fraudsters deceive individuals into scanning fake QR codes. Stakeholders have acknowledged government action in addressing the issues, while also noting opportunities to further develop a comprehensive platform capable of handling reports across a wider range of scam types—not only those related to financial fraud.

This initiative aims to respond to the increasing complexity of scams in the country, which now include online shopping fraud, fake job offers, social engineering, and impersonation of government officials. At present, victims may face challenges when reporting such incidents, as different institutions operate under specific mandates. Depending on the nature of the case, individuals may need to contact police stations, banks, or telecommunications providers.

To streamline this process, stakeholders have proposed the creation of a National Hotline. This single access point for scam reporting would collect detailed information and route cases to the most appropriate authority, such as financial regulators, telecom operators, or law enforcement agencies. By consolidating reporting and facilitating coordinated follow-up, the proposed hotline would help bridge existing gaps between government initiatives that currently operate in silos. It would support a more integrated and victim-centred approach to combating scams and fraud.

3. Leveraging Culture-Based Solutions: Budaya Gotong Royong in Scam Prevention

In Indonesia, combating scams is not solely a matter of technology or policy, it is also deeply rooted in culture. One of the most powerful yet underutilised tools in fraud prevention is the spirit of Gotong Royong, the Indonesian value of mutual aid and collective responsibility. As highlighted during the workshop, while governments and companies may build the necessary systems, it is often neighbours, family members, and community leaders who first spot the warning signs of scams, particularly in rural or lower-income areas.

Success stories bring this principle to life. Grassroots initiatives such as community alert boards warning of fraudulent job offers and WhatsApp groups sharing scam phone numbers have proven remarkably effective. These community-based alerts often spread more quickly and are perceived as more trustworthy than official institutional warnings.

A compelling example comes from Java, as shared by a participant, where village leaders established “anti-scam circles” in response to a series of pilgrimage-related scams. By leveraging traditional community gatherings and local storytelling techniques, there is an opportunity to educate elderly residents about potential red flags. These culturally grounded methods are seen as a possible effective innovation in shifting behaviours than conventional mass media campaigns. The key insight in the discussion is clear: defeating sophisticated scammers requires not only stronger systems, but also stronger solidarity.

4. Strengthening Rural Protection Alongside International Cooperation

As fraud techniques become increasingly sophisticated and transnational, Indonesia must adopt a dual-pronged approach that combines global collaboration with targeted local protection. While international partnerships are essential for tackling cross-border scam operations (such as phishing networks, money mule schemes, and cryptocurrency fraud), rural and underserved communities remain particularly vulnerable due to lower digital literacy and limited access to official support channels.

Workshop participants highlighted that many rural Indonesians, particularly elderly residents and those with inconsistent internet access, are falling prey to deceptively simple scams disguised as government assistance programmes, religious pilgrimages, or healthcare services. These schemes often rely on basic but highly effective tactics that exploit community trust, rather than advanced technology. In several documented cases, scammers have impersonated government officials offering social assistance, gathering personal information and demanding “administrative fees” from unsuspecting victims.

This reality underscores the need for international anti-fraud measures, such as global fraud intelligence sharing and digital tracking systems, to be complemented by community-level interventions. Effective strategies include strengthening the fraud prevention capacity of village (desa) governance structures, engaging religious leaders, and mobilising rural cooperatives to act as frontline educators and reporting channels. Equally important is ensuring that anti-fraud policies developed through ASEAN or other international forums are accessible and relevant to rural populations.

Comprehensive protection for Indonesia requires building connections in two directions: externally, through international cooperation to dismantle cross-border criminal networks, and internally, through the empowerment of rural communities to ensure equitable protection across the digital divide.