Over 7 in 10 Indonesians view insurance claim falsification as most taboo fraud

In contrast, a sizeable portion of the population feels otherwise.

Falsifying insurance claims is viewed as the most taboo form of fraud by Indonesians (77%), according to data analytics company FICO.

The survey, which polled 1,001 Indonesians, also found that half find it unacceptable to exaggerate income on a mobile phone contract (51%) or an application for automotive financing (49%).

Conversely, a significant portion of the population holds a different perspective. Two in five Indonesians believe it is acceptable to misrepresent their income on applications for a bank account (42%), a mortgage (35%), or automotive financing (49%). Additionally, more than a third (34%) consider exaggerating income for a personal loan application to be acceptable.

With 25% of consumers believing it’s acceptable to lie on mortgage applications and 10% viewing it as normal, financial institutions face increased risk assessment challenges and a higher potential for bad loans. According to market research company Mordor Intelligence, the Indonesian mortgage market, estimated at $4.56b (IDR72t) in 2024, is expected to reach $7.39b (IDR117t) by 2029.

The report also noted that mortgage applications from existing customers can be manipulated even if they appear legitimate. Applicants may inflate income, omit debts, or misrepresent personal circumstances, making it hard for lenders to detect fraud without thorough verification measures.

“Risk assessments can be enhanced by applying anomaly detection analytics, conducting comprehensive data analysis, and continuously monitoring accounts for signs of sleeper fraud or impending bust-outs,” Aashish Sharma, APAC segment leader for risk lifecycle and decision management at FICO, said.