LPS Warns Young People About Digital Financial Traps
Most people now have smartphones and easy access to digital financial products, but this convenience also brings risks such as impulsive spending, illegal online loans and gambling.
Surabaya, East Java (ANTARA) – The Deposit Insurance Corporation (LPS) has urged young people to beware of digital financial traps, including online gambling and illegal online loans, as broad access to financial services has not been matched by adequate understanding of them.
“Most people now have smartphones and easy access to digital financial products, but this convenience also brings risks such as impulsive spending, illegal online loans and gambling,” LPS Deputy Chairman of the Board of Commissioners Farid Azhar Nasution said during a public lecture at Surabaya State University (Unesa) in Surabaya, East Java, on Sunday.
According to the 2026 National Survey on Financial Literacy and Inclusion (SNLIK), Indonesia’s financial literacy rate stood at 69.5 per cent, while financial inclusion reached 93.6 per cent.
This indicates a continuing gap between access to financial services and people’s understanding of how to use them.
Farid also highlighted the risk of online gambling, including sports betting, which can particularly affect young people, especially Generation Z.
He cited Bloomberg data showing that 52 per cent of respondents had diverted investment funds to sports betting, while 26 per cent considered the activity part of a long-term financial strategy.
Farid said strengthening financial literacy from an early age was therefore necessary so that students could identify the risks of digital financial products, distinguish needs from wants and make sound financial decisions amid the ease of transactions on digital devices.
He encouraged young people to develop a regular saving habit by following the principle “set aside, don’t save what is left” – allocating part of their income or pocket money at the outset to build an emergency fund and meet future needs.
Beyond monetary savings, Farid urged students to invest in themselves by expanding their knowledge, building character and developing positive networks, as these were long-term investments that supported financial independence.
At the same event, LPS and Unesa signed a cooperation agreement on developing competencies, conducting research and raising awareness about LPS’s functions, duties and authority. The agreement covers improving the skills of students and lecturers and introducing the institution’s role to the university community.
Farid said he hoped the partnership would help students better understand sound financial management and LPS’s functions and powers, enabling them to navigate digital financial risks and prepare more wisely for their economic future.