Finance and Banking Industries are the Most Affected by Fraud

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According to Survei Fraud Indonesia 2019, it was revealed that finance and banking industries were most disadvantaged by fraud. Although the report does not mention in detail the types of fraud that occurred, based on information from an experienced investigator, Rachel Vamos, CFE , to Fraud Magazine, in general, the fraud that occurs in these industries include identity theft, account takeover, loan fraud, wire transfer fraud, and fraud checks.

Strengthening internal control

The Jouska fraud case and BTN loan gratification case are two of the prominent fraud cases in the financial and banking industries in Indonesia. In order to prevent similar cases from reoccurring, tremendous efforts in strengthening internal control is required. One of them is stated in the OJK Regulation Number 39 / POJK.03 / 2019.

In this regulation, the OJK requires banks to formulate and implement an effective anti-fraud strategy. “The strategy fulfills at least four pillars in accordance with OJK guidelines, which are prevention, detection, investigation, reporting, and sanctions, and monitoring, evaluation and follow-up,” stated by the OJK in article 3 paragraph 1.

The strategic steps in the prevention and detection pillar, including the whistleblowing mechanism, are contained in the clauses of the ISO 37001 Anti-Bribery Management System (ABMS) standard.

Training and consultations of ISO 37001 ABMS

Should a bank already have ISO 37001 certification, they automatically implement some of the anti-fraud regulations stipulated by the OJK. The ISO is also the company’s liability standard based on PERMA No.13 of 2016, especially for vital sectors such as oil and gas, health, finance and others.

In order to efficiently follow the ISO 37001 certification process and increase the chances of success in obtaining the certificate, companies are advised to attend training and consultations. Integrity Indonesia is ready to assist you to set up your own ABMS. Integrity will also provide support for the implementation of the SNI ISO 37001:2016 standards. We follow a four-stage Plan / Do / Check / Act methodology to help you prepare and implement an ABMS. For details on how our training and consultations can help your company, contact us today!