Jakarta. More Indonesians are embracing the convenience of digital wallets, and cybercriminals remain a threat that both customers and service providers need to watch out for.

Aside from the financial losses, these cyberattacks are also bad news for Indonesia’s e-commerce industry, according to a top brass at the cybersecurity firm Fortinet.  

A recent joint study by AC Ventures and Boston Consulting Group (BCG) revealed that Indonesia had over 63 million e-wallet users as of 2020. Between 2017 and 2021, e-wallet transactions totaled over $20 billion.

Citing a McKinsey report, Edwin Lim, Fortinet’s country director for Indonesia, said that digital wallets had become the leading e-commerce payment method in the country, accounting for almost 39 percent of the transaction value last year. Edwin admitted to not having the exact numbers on cyberattacks related to digital wallet transactions in Indonesia throughout 2022.

“[But] it is clear that the growing use of digital wallets in the country has made them a prime target for cybercriminals,” Edwin told the Jakarta Globe in a recent interview.

“As the use of digital wallets continues to grow, it is likely that cybercriminals will become even more emboldened in their efforts to target both customers and service providers,” he said.

There are tons of ways that a cybercriminal might hack one’s digital wallet. Edwin warns digital wallet providers to be "especially wary" of phishing, spams, and bots. For instance, a fraudster might conceal their malware under the guise of promotional deals or warning emails. They are likely to use the names of trusted organizations or display download links on trusted websites to lure unsuspecting users.

The National Cyber and Encryption Agency (BSSN) estimated that economic losses from cyberattacks in 2021 totaled a whopping Rp 14.2 trillion ($957 million). At the same time, Indonesia’s digital economy is forecast to hit the $130 billion mark by 2025, a growth driven primarily by e-commerce, according to the 2022 e-Conomy SEA report.

“The problem of cyberattacks related to digital wallets in Indonesia is not only significant in terms of the potential financial losses for customers and service providers. It also poses a risk to the overall development of the country’s e-commerce industry,” Edwin said.

To avoid getting scammed by phishing attacks, people need to watch out for suspicious emails. Phishing messages are synonymous with incorrect URLs and grammatical errors. It is paramount to educate oneself on common phishing tactics, Edwin told the Globe. 

Edwin also gave tips on how businesses could also reduce risks of online transactions, among others, by implementing two-factor authentication and using secure payment gateways. Businesses should also educate employees and customers on phishing and other cyber threats.

“Digital risk protection [DRP] services provide organizations with an out-of-the-network view of their security architectures. From there, teams will be able to identify exposed assets and vulnerabilities for immediate remediation. They can gain context on current and future threats, allowing them to stay more than one step ahead of cyberattackers,” Edwin said.