Fraud cases have become a significant concern across various sectors, as they can result in substantial financial losses for companies and pose a threat to broader economic stability.
Arika Artiningsih, M.Acc., M.Com., M.Res., Ph.D., CFE., CPA (Aust.), a lecturer at the Department of Accounting, Faculty of Economics and Business Universitas Gadjah Mada (FEB UGM), explained that fraud is an activity involving deceit to gain an advantage. Fraudulent activity can take various forms, including false representation, deception, and the use of underhanded tactics to trick victims.
“Fraud has distinctive characteristics: it involves deception, is carried out intentionally, is concealed, and causes harm,” she stated on Tuesday (September 30, 2025), during the EB Journalism Academy at FEB UGM, themed “Investigating Fraud: The Role of Journalists in Exposing Fraud and Protecting the Public.”
Arika further explained that in practice, fraud includes corruption, asset misappropriation, and financial statement fraud. According to the ACFE Occupational Fraud 2024 Report, the most common type of fraud globally is asset misappropriation, accounting for 89% of cases but with relatively minor losses. In contrast, financial statement fraud occurs less frequently but causes the most significant losses, reaching USD 766,000.
“In Indonesia, however, ACFE’s survey shows that corruption cases dominate. Meanwhile, asset misappropriation, a form of corruption, often occurs among government employees,” she emphasized.
Arika added that there are no specific demographic or psychological characteristics that define a fraud perpetrator. Anyone can commit fraud, and it is difficult to predict which employees, vendors, clients, or customers may act dishonestly.
“Typically, the longer someone works in an organization, the better they understand its system gaps, which increases the potential for fraud. Most fraud cases involve collusion, with more than one perpetrator influencing others to participate,” she added.
However, there are several red flags or early warning signs that organizations should be aware of, such as accounting anomalies, weak internal control systems, lavish lifestyles inconsistent with income, and suspicious complaints or reports. Some notable cases discussed include the manipulation of Garuda Indonesia’s financial statements and the falsification of ANTAM’s gold stamp.
Arika emphasized that journalists play a vital role in upholding the integrity of fraud reporting. She reminded journalists to adhere to the Journalistic Code of Ethics, uphold the presumption of innocence, use neutral language, maintain source balance, reject any form of gratuities, and protect the identities of whistleblowers. Clear and educational language in reporting, she emphasized, is key to helping the public understand fraud schemes without being judgmental.
Reportase: Shofi Hawa Anjani
Editor : Kurnia Ekaptiningrum
Sustainable Development Goals
