Fraud Costs Billions of Rupiah, These Are How Grab and Go-Jek Fight Against It

Go-Jek

Fraud Costs Billions of Rupiah, These Are How Grab and Go-Jek Fight Against It

Fraud does hit any kind of business no matter what kind of industry it is. Grab and Go-Jek, two giant platforms in the ride-sharing industry have experienced the loss due to fraud. The tight competition among drivers makes some of them cheat to gain more profit. From fake order – so-called “opik/order fiktif” among drivers – to cash payment fraud. These kinds of fraud result in business losses of up to billions of rupiah.

Grab and Go-Jek impose incentives for drivers who meet good performance criteria. This policy becomes an opportunity for some drivers by making fake orders. Basically, the fake order is a method that makes the drivers looked like they are serving the passenger, when in fact they are not. By using a fake GPS, the drivers can cheat the application system. The method enables drivers to gain more incentives.

 

Various fraud schemes

Not only do fake orders cause loss to the platforms, but also to the honest drivers and passengers. Grab and Go-Jek order systems allow their drivers to receive orders from nearby targets. The fake GPS allows drivers who located far from the target to catch the orders so that drivers who are near the target miss it out. The loss is also suffered by passengers because they have to wait longer as cheat drives take far distance to reach them.

Fraud is not only experienced by the local ride-sharing industry but also throughout Asia in various modes. Drivers in India take advantage of what they call surge-pricing by simultaneously going offline at popular spots. Once the price increases due to lack of the fleets, drivers are back online.

In Malaysia, drivers often offer cash payments to passengers. They ask the passengers to cancel the order with the option ‘I found another travel option’ when the passenger is already inside the vehicle. The drivers take the passengers to their destination and the passengers pay the tariffs in cash as stated on the application. This way the driver can earn money without being reduced by the app.

 

Go-Jek and Grab fight against fraud

Grab and Go-Jek increasingly tightened efforts to prevent, detect and handle fraud. Grab through the anti-fraud campaign “Grab Lawan Opik!” invests in anti-fraud technology and successfully lower fraud rates by up to 80%. For prevention efforts, Grab creates a code of ethics that must be obeyed by its drivers. Grab does not hesitate to impose sanctions if a driver is proven to conduct fraud after investigation by the fraud team.

As for Go-Jek, they utilize artificial intelligence in detecting fraud. JARVIS, a data-driven analytical engine built by an engineering team to magnify human analysts in detecting fraud. Last April Go-Jek also launched a detection tool that alerts drivers with pop-up notifications if they are detected using fake GPS app.

The efforts of both platforms aim to secure and comfort the passengers, while simultaneously also for the justice for the drivers.

 

 

Sources:

https://m.scmp.com/week-asia/business/article/2154770/who-pays-when-indonesian-ride-sharing-fraud-goes-full-throttle?amp=1

https://vulcanpost.com/593391/malaysia-grab-driver-scam-expose/

https://www.techinasia.com/talk/day-life-vp-fraud-gojek

 

 

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