Safe Tips for Digital Transactions

Recently, news of the apprehension of an online fraud syndicate engaging in identity theft in the West Java region has garnered media attention. The fraudulent group, posing as banking analysts, managed to deplete funds from the credit cards of several victims, resulting in total losses reaching Rp 2 billion.

In another instance, the threat of fraud through social media applications such as SMS, WhatsApp, social media, and email, as well as through online lending platforms (fintech), continues to cause concern among the public. A 2022 national study on digital fraud in Indonesia revealed that respondents significantly fell victim to five types of fraud, including false gift schemes, illegal online loans, the dissemination of harmful links, family scams, and illegal investments.

Regrettably, the trend of online fraud remains a pressing issue as digital transactions surge annually. According to data released by Bank Indonesia, as of April 2024, the total value of digital banking transactions amounted to Rp5,340.92 trillion, indicating a positive growth rate of 19.08% compared to the previous year.

In tackling this menace, the Government has previously enacted Personal Data Protection Law No. 27 of 2022, which includes provisions regarding the security of financial data/personal transactions, aiming to bolster the protection of personal rights and information security for citizens. Nevertheless, it is our responsibility as financial service users to remain vigilant in safeguarding personal digital transaction security.

Tips for Maintaining Security in Digital Transactions

There are numerous ways to anticipate security while engaging in financial activities. Follow the steps below to stay safe during digital transactions:

1. Verify the authenticity of online sellers/merchants before purchasing

Before shopping online, it's essential to thoroughly check the validity of sellers or merchants. Ensuring the legitimacy of sellers can help protect consumers from scams and counterfeit products. Additionally, reviewing the seller's reputation and feedback from previous buyers can provide insight into the quality of service and products offered. By conducting these checks, consumers can minimize risks and ensure a safe and enjoyable online shopping experience.

For example, when buying items from a marketplace merchant, always examine the store's profile, including its operational location, product descriptions, shipping options, sales volume history, and customer reviews before proceeding with transactions. It is advisable to shop from stores marked as official stores that have been verified directly by reputable marketplace platforms to avoid the risk of online fraud.

2. Avoid sharing sensitive personal data

Avoiding the habit of sharing sensitive personal data during online transactions is a critical step in maintaining personal security and privacy. Information such as credit card numbers, passwords, savings/assets, transaction histories, and personal identity details like ID numbers can be exploited by irresponsible parties for fraudulent purposes or other illicit activities.

By restricting access to sensitive personal information, individuals can shield themselves from identity theft risks and potential financial losses resulting from careless actions in digital transactions.

3. Utilize official digital payment methods

Utilizing official digital payment methods during online transactions is highly significant in ensuring transaction security and reliability. Ensure you use transaction methods from financial institutions officially registered and supervised by the government and the OJK (Financial Services Authority) to provide additional protection against fraud risks and other illicit activities.

Some payment methods you can employ include bank transfers, virtual accounts, digital wallets, ATM Link, and QRIS (Quick Response Code Indonesian Standard). Furthermore, official digital payments typically come equipped with advanced security features like two-factor authentication or data encryption, which can enhance overall transaction security.

4. Report any issues

Reporting problems to the authorities when transaction issues arise is crucial for protecting oneself and consumer rights. By reporting issues such as fraud, unauthorized payments, or transaction discrepancies, authorities have the opportunity to investigate and take appropriate actions.

In case of transaction anomalies, you can typically file complaints through the help center features available on marketplace platforms or financial applications you use. Additionally, you can utilize complaint portals provided by the Government to ensure consumer rights protection, accessible through the official BI (Bank Indonesia) or OJK websites.

This step can not only help recover lost funds or resolve disputes but also prevent similar actions in the future, maintain the security of the digital transaction ecosystem, and signal that legal violations will not be tolerated in electronic commerce.

For those seeking further information on consumer data protection, Bank Indonesia in collaboration with OJK, Kominfo (Ministry of Communication and Information Technology), ASPI (stands for Asosiasi Sistem Pembayaran Indonesia or the Association of Indonesian Payment System), and industry players has launched the "PeKA Generation" campaign aimed at increasing public awareness of consumer data protection and transaction security. With the tagline #SmartConsumerPeKAtransaksi, it is hoped that the public can take preventive measures to protect privacy and spread awareness to others. Visit Instagram @genpeka_ for more information.