KPK Reveals Various Methods of Fraud in the Capital Market
The Corruption Eradication Commission (KPK) has reminded capital market industry players about the various methods of fraud and corruption in the capital market. KPK urges all parties to exercise caution and collaborate in preventing fraud in the capital market.
This was revealed by KPK Director of Community Participation Development (Permas), Kunto Ariawan, during an anti-corruption socialisation event on Friday (17/4). The fraudulent methods range from market manipulation (pump and dump) to the misuse of customer fund accounts (RDN) that harm investors.
“In cases of misuse of customer funds or securities, there are practices involving the use of customer fund accounts without permission, even selling customers’ shares without valid instructions,” Kunto stated in a written remark on Monday (20/4/2026).
Kunto said that the commonly found method is market manipulation. There are practices such as excessive transactions for commissions (churning), engineering closing prices (marking the close), as well as market manipulation through fictitious transactions and the spread of false rumours that have the potential to harm investors and damage public confidence in the capital market.
KPK also mentioned fraudulent practices such as promising guaranteed profits on risky stock instruments or concealing material facts of issuers. He stated that the private sector must participate in preventing corrupt practices.
“Preventing corruption in the private sector focuses on building a self-assessment system that is practical and can be adapted to the size and capacity of the corporation,” he said.
He mentioned that KPK has programmes to strengthen the role of the private sector in eradicating corruption. Based on KPK data, out of 1,827 cases, 1,132 or 62% of criminal corruption acts occurring from 2004 to the first quarter of 2026 were gratifications and bribery.
“With synergy between regulators, business actors, and the public, KPK is optimistic that Indonesia’s capital market sector and business world can grow healthily, transparently, and free from corruption,” he said.