Bareskrim and FBI Uncover Chinese National's Fraud Against US Company

Bareskrim Polri has uncovered a business email compromise (BEC) fraud case targeting a United States company, resulting in losses of USD 350,325, or approximately Rp 6.2 billion. The scheme was masterminded by a Chinese national.

Head of Sub-Directorate I of the Cyber Crime Directorate at Bareskrim Polri, Senior Commissioner Deddy Supriadi, explained that the investigation was the result of cooperation between the Indonesian National Police, the Federal Bureau of Investigation (FBI), and the Indonesian Financial Transaction Reports and Analysis Centre (PPATK). Police have arrested two suspects: LPK (56), an Indonesian citizen, and LJ (46), a Chinese national.

“We are presenting the chronology of the uncovering of a transnational crime, namely the manipulation of electronic documents or information to make data appear authentic. The modus operandi is business email compromise,” Deddy said at a press conference at Bareskrim Polri in South Jakarta on Wednesday (19/8/2026).

The suspects are charged under Article 51 paragraph 1 in conjunction with Article 35 of the Electronic Information and Transactions Law on electronic data manipulation, Article 492 of the Criminal Code on fraud, Articles 82 and 85 of Law Number 3 of 2011 on Fund Transfers, and Article 607 of the Criminal Code on money laundering, with a maximum penalty of 15 years in prison.

Deddy explained that the case began when an American company, IQ Power Tools, conducted a trade transaction with a Chinese company, Duro Machinery Corp. The perpetrators intercepted email communications between the two companies and created fake emails resembling those of the legitimate counterpart.

“The perpetrators created emails resembling the company’s emails, where two companies were trading or cooperating in computer hardware sales. The perpetrators managed to communicate with the victim company to learn about payment transactions,” he explained.

Suspect LPK was instructed by the mastermind, identified as CW, a Chinese national who remains a fugitive. LPK was asked to establish a fictitious company, PT Aksesoris Andalan Bersama, with a bank account in Indonesia to receive the fraudulent proceeds.

“Suspect LPK was told to create company legal documents using his own child’s identity, with a fictitious address. From each transaction, suspects LPK and LJ received a 5 per cent share,” Deddy said.

LJ has lived in Indonesia since 2005. His role was to maintain communication with the mastermind, CW, who is in China.

Of the total victim loss of USD 350,325 (approximately Rp 6.2 billion), investigators managed to block the account of PT Aksesoris Andalan Bersama, which still held a balance of USD 285,859, equivalent to Rp 5 billion.

“As a result of this incident, the victim suffered losses of USD 350,325. Subsequently, an investigation was conducted and the account was blocked, and it was found that the account still had a balance of USD 285,859, or approximately Rp 5 billion,” he said.

The FBI stated that BEC cybercrime is not merely ordinary financial fraud. The FBI considers this sophisticated crime capable of damaging economic stability and the rule of law.

This was conveyed by the FBI representative to the US Embassy in Jakarta, Son Nguyen. Son expressed appreciation for the successful collaboration between the FBI, the Indonesian National Police, and PPATK in uncovering an international cybercrime case that caused losses of up to Rp 6.2 billion to a US company.

“Business Email Compromise is far more dangerous than mere financial fraud. It is a sophisticated threat that actively undermines public trust,” Son said at the press conference at Bareskrim Polri on Wednesday (19/8).

Son explained that the impact of BEC is massive because it targets crucial sectors. Beyond material losses, this crime erodes public confidence in digital systems.

“This crime erodes stability in our commercial and financial sectors, and undermines the rule of law,” he said.

Son expressed deep gratitude to the Indonesian National Police. He appreciated the dedication of the police in handling the email fraud case involving a US company.

“This meeting symbolises an important victory in our efforts to combat international cybercrime. I thank the Cyber Crime Directorate of Bareskrim for the very smooth collaboration,” Son said.

He also gave special appreciation to PPATK and the NCB Interpol Indonesia. According to him, PPATK’s ability to trace complex fund flows was key to recovering the victim’s assets.

“Special appreciation to PPATK for their invaluable financial tracking expertise. It was crucial in following the complex money trail,” he said.

Son said that thanks to the swift action of Indonesian authorities, most of the US company’s funds were successfully recovered.

“Thanks to the decisive action of the Indonesian National Police, we managed to recover most of the funds stolen from an American victim. For the victim, this is a monumental success,” Son said.

He stressed that distance and national borders are no longer protection for cybercriminals. The FBI is committed to continuing to align resources and intelligence with international partners, including Indonesia.

“Cybercrime operates without borders, assuming that distance will protect them from justice. Today proves that justice prevails. There is no safe place for those who exploit our digital financial economy,” Son added.