Cacco's Investigation Reveals Alarming Fraud Trends in Indonesia's E-Commerce Market

Cacco, a leader in fraud detection services in Japan, conducted an extensive survey to assess fraudulent activities in Indonesia's booming e-commerce sector. The survey, executed by Populix, took place in May 2025 and involved 100 e-commerce businesses. This study unveils critical insights about the rising issues of fraud that are increasingly becoming a challenge for Indonesian online retailers.

Growing E-Commerce Landscape in Indonesia

Indonesia is not only a significant player in the Southeast Asian digital economy but is also expected to witness tremendous growth in its e-commerce sector. Projections indicate that the e-commerce market could scale up to $86.81 billion by 2028, with an average growth rate of 10.4% per year. Coupled with a rising population, consumer activity is anticipated to surge, presenting both opportunities and challenges for businesses operating in this dynamic landscape.

However, as the e-commerce sector expands, so do the fraudulent activities associated with it. Cacco's survey points to an unsettling trend: 65% of e-commerce operators in Indonesia have reportedly experienced some form of fraud. The implications of these findings pose significant concerns for the future sustainability of the sector.

Key Findings from the Survey

1. Frequency of Fraud Incidents

The findings indicate that a shocking majority of 65% of e-commerce users have been victims of various fraud-related incidents. This highlights the urgent need for effective prevention and rapid response strategies across the industry.

2. Types of Fraud Predominating in Indonesia

Most notably, the survey reveals that fraud incidents related to Cash on Delivery (COD) and unauthorized account access are predominant. Unlike in Japan, where credit card fraud is a major concern, it only accounts for 6% of cases in Indonesia, reflecting a unique fraud landscape that requires tailored countermeasures for prevention.

3. Financial Impact of Fraud

While the number of reported fraud incidents is high, approximately 75% of reported monthly losses are below IDR 1,000,000 (around $9.33), indicating that smaller businesses may be disproportionately endangered. Nevertheless, 23% of respondents reported losses between IDR 1,000,000 and IDR 10,000,000, pointing to a concerning trend where significant financial damage is also prevalent within the sector.

4. Measures Against Fraud

Cacco's survey found that over 50% of e-commerce businesses are currently using manual monitoring and fraud detection systems to combat fraud. Yet, only 22% have implemented 3D Secure technology, a strategy commonly employed in Japan. These statistics emphasize the need for better security protocols tailored to the Indonesian market.

5. Increased Burden from Fraud

The report also highlights that many businesses dedicate dozens of hours each month to monitoring fraudulent activities. The reliance on manual processes not only increases operational costs but also contributes to inefficiencies and the risk of false positives, potentially detracting from the overall customer experience.

Conclusion

This investigation has unveiled alarming patterns in Indonesia's e-commerce sector concerning fraud. Refusals of cash on delivery and account takeovers are significant forms of fraud that reflect the unique transactional habits within the country. As many businesses still depend heavily on manual monitoring, it's clear that a systemic shift towards real-time fraud detection and automated solutions is imperative in reducing human dependency.

As seen in other markets, such as Japan, the evolution of fraudulent schemes tends to parallel market growth. Therefore, it is anticipated that the complexity of fraud in Indonesia will increase in tandem with the expanding e-commerce landscape. Cacco is committed to supporting the fortification of fraud prevention measures adapted to the Indonesian market, aiming to contribute to safe and sustainable growth in the e-commerce sector.

About Cacco

Founded in January 2011, Cacco focuses on creating innovative solutions that promote safety in online transactions through its fraud detection service, "O-PLUX." Providing data-driven insights and services across various industries, Cacco aims to help businesses tackle challenges while enhancing Operational efficiency and driving profitability.

For more information about Cacco and its services, visit Cacco's website.