Indonesian banks face growing risks amid rising scams and shifting consumer expectations, according to a new survey by global analytics software leader FICO.

According to FICO’s 2024 Scams Impact Survey: Indonesia, one in three consumers blame banks—either the sender’s or receiver’s—for scam-related losses, even though many accept they may never be refunded.

In addition, 69% would file a formal complaint if they were unsatisfied with their bank’s response to a scam, 12% said they would switch banks, and 8% would escalate to a regulator. These findings underscore mounting pressure on banks to take a more proactive role in scam prevention—or risk reputational damage and customer attrition.

“Fraud prevention is no longer just a compliance requirement—it’s a key factor in customer trust and loyalty,” said Dattu Kompella, managing director in Asia for FICO. “Consumers expect banks to be at the forefront of the fight against scams, and institutions that fail to meet these expectations will struggle to remain competitive.”

Consumers expect protection, not payouts

While refund policies are a growing focus for regulators worldwide, Indonesian consumers appear to have unusually low expectations when it comes to refunds. According to the survey, nearly 6 in 10 (59%) believe banks should “never” or “only rarely” refund scam victims, while just 3 in 10 (27%) say banks should provide refunds all or most of the time—well below the global average.

“This data turns the refund debate on its head,” added Kompella. “Indonesian consumers are pragmatic—they don’t expect refunds, but they do expect their banks to act as a shield. That means leveraging technology, data, and real-time decisioning to prevent scams before the money leaves the account.”

Consumers demand stronger scam prevention measures

Across Indonesia, scam exposure continues to rise. 66% of consumers reported receiving suspicious messages in 2024, up 2 percentage points from 2023. 57% said a friend or family member had been scammed, an increase of 8 percentage points from the previous year.

And while 55% of Indonesians say they would take personal responsibility if tricked by a scam, many still expect their banks to share the burden. More than one-third of consumers blame either the sending bank (15%) or the receiving bank (19%), highlighting a shift in expectations toward shared accountability.

“Indonesian consumers want their banks to be active partners in the fight against fraud,” added Kompella. “This is a crucial opportunity for banks to strengthen their defences and proactively protect consumers. By doing so, banks not only safeguard their customers' finances but also reinforce their reputation as trusted protectors.”

Proactive fraud prevention drives positive sentiment

The survey also shows that proactive scam prevention builds consumer trust. 69% of Indonesian consumers said they would feel positively toward their bank if it blocked a payment linked to a suspected scam, even if the action caused a temporary delay. This finding reinforces the value of real-time decisioning, automated alerts and customer education.

“Effectively combating scams requires more than just good intentions—it demands intelligent systems,” concluded Kompella. “Technologies like artificial intelligence (AI)-driven analytics, real-time decisioning and contextual engagement empower banks to act quickly and precisely, delivering targeted warnings or triggering step-up authentication or suspending a transaction before it's completed.”

FICO’s survey was conducted in 2024 by an independent research company. It surveyed 1,001 Indonesian adults, along with approximately 11,000 other consumers across 14 countries, to explore their experiences regarding RTP usage, scams, and their banks’ scam prevention capabilities.

Re-disseminated by The Asian Banker