Left to right: Grab's head of user trust Wui Ngiap Foo, Communication and Information Ministry's head of investigation division Teguh Arifiyadi and Grab Indonesia's president Ridzki Kramadibrata at the launch of Grab Defence, a new fraud and prevention technology, in Jakarta on Wednesday (13/03). (B1 Photo/Mohammad Defrizal)

Grab Launches New Technology to Fight Fraud

BY : CHRISTIAN LEE

MARCH 15, 2019

Jakarta. Ride-hailing giant Grab has just launched Grab Defence, a new suite of tools designed to detect and prevent fraud. The new technology, launched in Jakarta on Wednesday (12/03), will be available through Grab Platform, the company’s open platform.

Online fraud has long been haunting ride-hailing services in Indonesia. According to Grab Indonesia president Ridzki Kramadibrata, Indonesia is a key market for Grab because of its size, a high number of users and the variety of services it provides through its app, which also makes the app susceptible to fraud.

He hopes that Grab can increase trust with its users and partners with the launch of Grab Defence.

"We are proud of the work we have done and the measures we put in place to lower our fraud rate. We are excited to share our expertise in this area with our partners through Grab Defence in order to ensure the healthy development of Indonesia’s technology ecosystem," Ridzki said.

Grab Defence consists of three sets of tools: first, event risk management suite enables businesses to assess the risk of any event or transaction. Second,  entity intelligence services use Grab's database to identify bad actors and assign a risk score to users interacting with the platform. Third, device and network intelligence services identify fraudsters based on data points gathered from the device they use and help protect businesses against fake accounts.

Grab had already taken steps to minimize fraud in the past. In 2017, Grab Indonesia launched a campaign to fight fake orders called "Grab Lawan Opik!." The company also introduced Grab FairPlay to encourage drivers to report fraudulent behavior within the app.

In June last year, Grab claimed that the campaign had reduced fraud by up to 80 percent and uncovered several large fraud syndicates throughout Indonesia.

According to a study conducted this year by Spire Research and Consulting, 5 percent of all orders made through the Grab app can be considered fraudulent. In contrast, the figure at its main rival Go-Jek stands at 30 percent, which means almost one out of three orders on the app is fake.

Grab's head of user trust Wui Ngiap Foo pointed to a 2018 report from payment security firm CyberSource, which found that 1.6 percent of e-commerce revenue in Southeast Asia are lost to fraud. The amount is higher in Indonesia at 3.2 percent—a twofold increase.

Foo wants Grab to keep the fraud rate below 1 percent by collaborating with its partners.

"Fraud is not unique to ride-hailing, it's a problem that stalks the digital economy at large. With the launch of Grab Defence, we want to share our expertise with our partners who are fighting the same battle. By tackling this problem together we can build a more robust and trusted tech ecosystem in Southeast Asia," Foo said.

Grab sees billions of transactions every year across the different services it provides, giving the company a clear comprehension on how fraud works in the region and the tools to eradicate it.

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