Fraud Losses Reach IDR 4.6 Trillion, Jalin Strengthens Cyber Threat Detection with AI

The national switching company develops machine learning–based fraud detection to safeguard the digital payment ecosystem connecting more than 100 financial institutions through the Link network.

Jakarta – Cybercrime targeting Indonesia’s digital payment systems has reached alarming levels. According to the Financial Services Authority (OJK), more than 225,000 financial fraud reports were recorded with total losses of IDR 4.6 trillion as of August 2025.

In response, PT Jalin Pembayaran Nusantara (“Jalin”), a national payment infrastructure provider that connects over 100 financial institutions, announced a comprehensive strategy to combat increasingly sophisticated cyber threats.

“Financial fraud risk in Indonesia is not a minor issue. These figures show that behind the convenience of digital services, the public remains vulnerable to harmful financial schemes,” said Ario Tejo Bayu Aji, President Director of Jalin, during an interview with CNBC Indonesia Power Lunch, Friday (10/10).

Cyberattacks Surge to 3.6 Billion in First Seven Months of 2025

The scale of threats continues to grow. Indonesia’s National Cyber and Encryption Agency (BSSN) recorded more than 3.6 billion cyberattacks in the first seven months of 2025, the majority aimed at data theft.

This situation compels Jalin—which serves members ranging from Himbara banks and regional development banks (BPDs) to private, digital banks, and fintechs—to continuously strengthen its multi-layered defense.

As a Payment Infrastructure Provider (PIP), Jalin applies a security framework guided by Bank Indonesia’s regulations on cyber resilience. Measures include anomaly monitoring, regular audits and penetration testing, and the establishment of a Cyber Incident Response Team (CIRT) that conducts routine recovery drills with Bank Indonesia.

One of the biggest challenges lies in detecting suspicious transactions at an early stage. While technically possible from the very first attempt, in practice it is far more complex because each bank and fintech exhibits unique transaction patterns. For instance, spikes in activity during social assistance disbursements or late-night settlement processes of Payment Service Providers (PJP) may appear anomalous, but in fact are normal event-driven patterns.

Jalin has also shared its experience in handling suspicious overseas transactions. During the initial phase of QRIS cross-border implementation, indications of attempted fraud were detected. The incident was addressed collectively and swiftly, ensuring customer safety. Today, the system is more mature, positioning Indonesia to expand QRIS cross-border adoption with stronger standards.

A Tailored Approach for More Than 100 Members

With a membership base exceeding 100 institutions, each with distinct characteristics, Jalin adopts a tailored approach rather than a one-size-fits-all method.

“For example, if a merchant’s average daily transaction is around IDR 100 million and suddenly spikes into the billions at unusual hours, that warrants close scrutiny. But the way we interpret such patterns cannot be generalized across all members, which is why Jalin applies customized monitoring for each institution,” the company explained.

In facing increasingly advanced cyber threats, Jalin is taking a further step by leveraging its vast transaction big data to develop machine learning–based fraud detection. This effort is supported by regular consultation with BSSN and intensive discussions with Bank Indonesia, OJK, and the Ministry of Communication and Digital Affairs to anticipate evolving risks and mitigation strategies.

Jalin emphasizes that cybersecurity should not be seen merely as an operational expense, but as an investment to safeguard the industry, the ecosystem, and ultimately the public.

By applying a holistic approach that integrates people, processes, and technology, coupled with close collaboration with regulators and industry stakeholders, Jalin demonstrates its commitment to continuously reinforcing the sovereignty of Indonesia’s payment systems amid relentless cyber threats.