OJK Develops App to Help Public Identify Legal and Illegal Financial Entities

The Financial Services Authority (OJK) is developing an application that can help the public identify legal and illegal financial entities as part of efforts to strengthen consumer protection from various investment fraud schemes. Kepala Eksekutif Pengawas Perilaku Usaha Jasa Keuangan, Edukasi dan Pelindungan Konsumen OJK, Dicky Kartikoyono, stated that the development of the application is part of leveraging technology to improve financial literacy and consumer protection in the financial services sector. “We at OJK are currently developing an application that can help identify which entities are legal and which are illegal. This is an effort that certainly uses technology,” Dicky said during a virtual press conference on Tuesday. He explained that the application is expected to help the public apply the ‘2L’ principle—Legal and Logical—before using a financial service or making an investment. Dicky elaborated that the public must first verify the legality of a financial service provider and be wary of investment offers that promise unreasonably high returns. He noted that this pattern is commonly used in pig butchering scams, a fraud that begins by building the victim’s trust through various false conveniences and profits before their funds become inaccessible. In many pig butchering scam cases, he added, victims only realise they have been defrauded when a large amount of accumulated funds can no longer be withdrawn. He also urged the public not to easily trust investment offers from unknown parties or those circulating on social media, to maintain the confidentiality of personal data such as PINs and one-time passwords (OTPs), and to always verify information before making investment decisions. He added that the public can also consult with individuals knowledgeable about financial products or family members before placing funds in an investment instrument. As part of efforts to eradicate illegal financial activities, the OJK recorded receiving 22,206 complaints related to illegal entities from 1 January to 30 June 2026. Of these, 19,169 complaints concerned illegal online loans, 2,878 related to illegal investments, and 159 were regarding illegal pawnbroking. The OJK, together with members of the Task Force for the Eradication of Illegal Financial Activities (Satgas PASTI), banking industry associations, and payment system providers, is also continuously strengthening the Indonesia Anti-Scam Centre (IASC). Since it began operating on 22 November 2024 until 30 June 2026, the IASC has received 608,187 fraud reports, comprising 296,405 reports from financial sector businesses and 311,762 reports submitted directly by victims. From these reports, 1,085,127 bank accounts were reported, with 557,751 of them subsequently blocked. The IASC also successfully blocked victim funds totalling Rp674.1 billion and returned Rp196.93 billion from accounts at 19 banks used by perpetrators. Additionally, the IASC identified 132,613 phone numbers reported by victims and will continue to enhance its capacity to accelerate the handling of fraud cases in the financial sector.