Financial Literacy Key to Combating Illegal Investments

The rampant offering of illegal financial products and fraudulent investments can be countered with financial literacy. Therefore, the media plays an important role in broadening the dissemination of information about official banking products so that the public becomes more understanding and can be protected from various modes of fraud in the financial sector.

This was revealed during the Banking Insight 2026 media gathering themed ‘Distinguishing Legal and Illegal Investments Amidst the Rise of Digital Financial Offers’, organised by PT Kolaborasi Mediapreneur Nusantara/Pikiran Rakyat Media Network (PRMN) in collaboration with Bank Mandiri Taspen in Purwokerto, Banyumas Regency, Central Java.

I Putu Agus Sinom Artawan, Distribution Head for Central Java and Yogyakarta at Bank Mandiri Taspen, explained that his party wants to educate the public to understand that every credit application must be tailored to their needs and repayment ability. He stated that the public must also know that all application processes are carried out according to applicable provisions and procedures.

Sinom said that official bank products can be recognised by clear information regarding the product and a credit application mechanism that is carried out in stages, starting from the customer’s application, fulfilment of required documents, verification, credit analysis, to approval from the bank. Every prospective debtor must submit official documents, such as an identity card and family card. Afterwards, the bank independently verifies and analyses the debtor’s information data, and conducts a telephone confirmation with the prospective customer to ensure the validity of the application before the credit is approved. ‘So, no application is immediately disbursed. Everything goes through a process of verification, analysis, and telephone confirmation with the prospective customer,’ he clarified.

Sinom revealed that official bank products also have complete information regarding requirements, interest rates, terms, as well as the rights and obligations of the customer, which are explained openly. On that occasion, Sinom also introduced several financing products from Bank Mandiri Taspen, namely Kredit Mantap Prapensiun, Kredit Mantap Pensiun, and Kredit Mantap for active employees through cooperation or payroll facility schemes.

Meanwhile, Dian Purnomo Jati, an academic from Universitas Jenderal Soedirman Purwokerto, said that the public needs to have adequate financial literacy to be able to distinguish official banking products from various investment offers or financial products that lack clear legality. According to him, the first step in recognising an official bank product is to ensure that the product comes from a financial services institution that is licensed and under the supervision of regulators.

Additionally, the public can utilise the official channels of the Financial Services Authority (OJK) to verify the legality of the institution and the products offered. ‘Make sure it truly originates from the relevant financial institution. Do not just look at the returns, but also check the legal aspects,’ said the lecturer from the Faculty of Economics and Business.

Dian said the public must also scrutinise the reasonableness of the returns offered. As a comparison, deposit interest rates at general banks typically range from 2.5 to 4 percent per year, while deposits at rural banks are around 5 to 6 percent per year. Offers of profits far above this range should be viewed with suspicion. He reminded the public to apply the 2L principle, namely Legal and Logical, before using a financial product. In this context, legal means ensuring the product comes from a licensed institution, while logical means assessing the reasonableness of the returns and the associated risks.

‘If someone offers fantastic returns, do not immediately believe it. Verify its legality first and understand the business process. A healthy investment offers logical returns, not promises of guaranteed profits without risk,’ Dian explained. He stated that official bank products are always accompanied by a transparent process, official documents, and clear agreements. ‘Financial literacy is the main fortress so that the public does not easily fall victim to fraud disguised as investment or illegal financial products,’ Dian concluded.