AI Causes Indonesian Public Losses of Rp6 Trillion

Indonesia has recorded 274,000 financial fraud reports with total public losses exceeding Rp6 trillion throughout the period from 2024 to 2025, largely driven by AI-based deepfake attacks targeting vulnerabilities in digital banking onboarding systems.

In response to the escalation of cyber threats, the Financial Services Authority (OJK) emphasises that liveness verification and real-time anomaly detection are no longer optional features but operational necessities for all financial services institutions in Indonesia.

“Our supervisory framework continues to evolve. We expect financial services institutions to implement multi-layered authentication, robust liveness verification, and real-time anomaly detection as primary operational needs, not merely optional add-ons,” stated Indah Iramadhini, Head of the Banking Regulation and Development Department at OJK, on Tuesday, 12 May 2026.

Deepfakes, which are synthetic audio, video, and images generated by AI to convincingly mimic an individual’s identity, have shifted from theoretical threats to active fraud instruments targeting Indonesia’s financial systems.

The rapid penetration of digital banking, with tens of millions of accounts opened via remote onboarding channels, has significantly expanded the attack surface.

Onboarding processes designed to promote financial inclusion have simultaneously opened vulnerabilities that are now being systematically exploited by fraudsters.

Meanwhile, conventional rule-based systems previously used were not designed to detect such threats. Therefore, for financing companies, fintechs, and digital payment platforms, this risk is real, measurable, and continuously increasing.

Government Relations Director of Advance.AI Indonesia, Entin Rostini, provided positive news that technologies to detect and prevent deepfake attacks are already available and mature.

The challenge lies in implementing them on a large scale and integrating them across all onboarding and transaction monitoring processes. “We have been at the forefront of addressing deepfake challenges in Southeast Asia for several years,” she said.