AI-based fraud threats on the rise as industry urged to bolster digital payment systems

Rapid growth of Indonesia’s digital economy has been accompanied by an increase in cybercrime threats to digital payment systems.

Industry players are urged to strengthen transaction security systems amid the rising use of artificial intelligence (AI) by fraudsters.

Bank Indonesia (BI) recorded 14.82 billion digital payment transactions in Q1 2026, a 37.69% rise compared to the same period last year.

94% of cyber threats involve high-risk malware evolving into ransomware attacks.

AFTECH Deputy Chairman Budi Gandasoebrata stated that the digital finance industry must not only grow rapidly but also possess robust resilience against cyber threats.

He emphasised that security, infrastructure resilience, and risk management are fundamental to building a healthy and sustainable payment system.

Budi noted that fraudsters’ use of AI has made fraud threats increasingly complex and difficult to detect using conventional methods.

Therefore, strengthening fraud detection systems is crucial to safeguarding digital transactions and maintaining public trust in digital financial services.

Tri Herdianto, head of the OJK’s Consumer Legal Defence Directorate, said the rise in digital transactions in Indonesia has been accompanied by increasingly complex fraud threats in terms of methods and scale.

‘The significant growth in digital transactions, driven by widespread e-wallet and QRIS adoption, is matched by escalating threats in both method and scale,’ he said.

He stressed that industry preparedness to bolster digital transaction security is now vital.

‘We must understand that fraud resilience is no longer merely a technical or technological issue, but a cornerstone for maintaining public trust and ensuring business sustainability in the financial services sector,’ he added.