Rising year-on-year fraud losses are being borne by 48% of them.

In Indonesia, more than three quarters (78%) of consumers said that security is their top priority, followed by convenience. In addition, while businesses are confident in their ability to verify the identity of their customers, 48% of Indonesian businesses are experiencing rising year-on-year fraud losses, often the result of an inability to recognize customers.

These are some of the findings of recent research from global information services firm Experian. Their annual Global Identity and Fraud Report found that 100% of Indonesian businesses are confident in their ability to identify and re-recognize their customers; the highest in APAC alongside India. However, while this should mean an abatement in fraud, the year-on-year growth in fraud showed otherwise.

There are clearly concerns, as 36% of consumers in Indonesia (lowest in APAC) stated that they do not feel valued (in terms of personalized greetings and prompts) when doing business online. The report found that the key to meaningful online customer engagement is to identify and recognize consumers time after time. Data collected during each interaction augments the identity authentication process and breeds familiarity. This helps reduce the friction that customers experience, which in turn bolsters confidence, creates a more positive customer experience, and builds trust.

Said Dev Dhiman, Managing Director, Southeast Asia & Emerging Markets, Experian: “The digital economy is transforming Indonesia. To improve the overall user experience, businesses need to accelerate their efforts in being able to digitally recognize existing and potential customers securely, seamlessly, correctly and consistently. With concerns for identity and fraud still shaping the digital relationship between consumers and businesses, organizations need to invest in technologies such as advanced authentication, device intelligence and analytics solutions to ensure successful customer re-recognition, especially with increasing instances of fraud.”

Recognizing the importance of identity authentication and re-recognition, findings from the study revealed that organizations in Indonesia are committing to advanced technology, with 72% looking to invest in AI for fraud management and 70% for customer authentication. This demonstrates that advanced authentication methods, such as machine learning, device intelligence and biometrics, may be the key to successful re-recognition.

“Personalization, security, and convenience still sit at the cornerstone of the evolving digital relationship. While businesses are collecting more personal data than ever before to tailor the user experience, consumers are most concerned about interacting with these businesses in a secure and seamless manner,” added Dhiman.

To develop the study, Experian interviewed more than 6,500 consumers and more than 650 businesses across 13 countries around the world. Additional findings for the Indonesia market from the fourth annual fraud report include:

More than nine in 10 (93%) of consumers cited protecting their data from theft or misuse, which may lead to identity theft or fraud as very important in terms of delivering customer experience



82% of consumers cited visible demonstration of security as very important when engaging and interacting online



66% of consumers wanted more control over the use of their data



85% of consumers understood the value of their personal information to businesses



Almost all (97%) consumers liked the changes being made to the customer experience as a result of their data being used



Only 23% of businesses were prioritizing the creation of targeted products and offers

The full Global Identity and Fraud Report can be downloaded here.

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