Synthetic identity attacks are forcing Indonesian finance to rethink digital trust
Deepfake AI is no longer a distant concern for banks and financial service providers in Indonesia. The threat is now pressing directly on identity verification, transaction approval, and the protection of customer funds.
The danger is amplified by the very digital systems that made financial access faster and easier over the past decade. As more services rely on faces, voices, and other digital identifiers, criminals are finding new ways to exploit those same channels.
Losses are already on a large scale
The impact is not theoretical. Data from OJK and the Indonesia Anti Scam Centre recorded 274,000 reports of financial fraud between late 2024 and 2025.
Estimated losses to the public have exceeded Rp6 trillion through the abuse of digital identity. That scale shows how synthetic identity attacks have moved from a technical concern to a direct threat to customer balances.
Fraudsters are using increasingly convincing methods. Face manipulation can help them pass KYC checks, while voice cloning can be used to authorize illegal transactions.
Digital onboarding has become a weak point
The expansion of digital banking has improved financial inclusion, but it has also widened the attack surface. Tens of millions of accounts opened through remote onboarding channels are now attractive targets because they can be attacked with high-quality synthetic facial recordings.
Verification processes designed to make access easier can also become a vulnerability when security systems do not keep pace. The risk is even more serious for financing companies and digital payment platforms that have not updated their defenses with the latest anomaly detection technology.
Regulators are pushing for stronger controls
In Jakarta, AFTECH and ADVANCE.AI discussed national defense strategies against synthetic identity attacks in a forum titled “AI, Risk and Regulation.” Senior regulators and technology experts also took part in the discussion as industry players worked to shape a more proactive response for Indonesia’s digital economy.
Indah Iramadhini from OJK said the supervisory framework will continue to evolve so that technological innovation remains aligned with consumer protection. OJK now requires financial service institutions to apply layered authentication and stronger liveness verification as core operating standards.
The regulator also wants guidance that is strict but still practical. The goal is to protect the integrity of the financial system without slowing industry growth.
Technology is ready, but deployment remains the challenge
ADVANCE.AI said the technology needed to detect deepfake attacks is already mature and ready to be integrated into Indonesia’s financial ecosystem. The main challenge lies in applying it consistently from onboarding to real-time transaction monitoring.
Its strategic partnership with AFTECH signals that synthetic identity detection is no longer an optional add-on. For financial institutions, adaptive AI-based verification is increasingly viewed as a necessary investment to maintain business continuity in the digital era.
AFTECH Secretary General Firlie Ganinduto stressed that every financial institution carries a different risk profile. For that reason, mitigation strategies must be tailored so that cyber defenses match the characteristics of each fintech provider.
Collaboration between associations, technology providers, and the government is now seen as essential. With cross-sector coordination, Indonesia can preserve the benefits of digital progress without sacrificing the safety of customer funds.
Source: id.mashable.com
