“I Never Shared My OTP, But My Money’s Gone.”This is no longer a rare story—it’s happening every day.
Customers wake up to see their accounts drained. Banks scramble to investigate. And more often than not, the root cause is the same: a compromised or fake phone number.
In a time where financial services are increasingly digital, the phone number has become the new frontline of security. And when that line is weak, the consequences are not only financial—they’re reputational.
Let’s unpack why phone number verification is no longer a nice-to-have for financial institutions. It’s a necessity.
Trillions of Rupiah Lost to Fake or Unverified Phone Numbers
- Rp2.18 trillion in unpaid loans–reflecting the volume of defaulted online lending in Indonesia as f May 2025. Much of it was caused by fake borrower data—including invalid phone numbers. These numbers make borrowers hard to trace, stalling collection and inflating credit risk.
- SIM Swap fraud has wiped out millions. Cybercriminals exploit this method to hijack phone numbers and intercept OTPs (One-Time Passwords), enabling unauthorized access. Without verifying if the phone number truly belongs to the account holder, banks remain exposed to massive theft.
- Rp2.5 trillion gone in account takeover fraud. Between 2022 and 2024, Indonesia’s top 10 banks recorded staggering losses due to account takeover incidents. And in many cases, the breach began with a stolen or spoofed phone number.
The Hidden Operational Costs of Weak Verification
Fraud impacts more than just customers—it imposes significant operational and financial burdens on institutions. Every fraud case involving a phone number demands time, investigation, manpower, and in some cases, compensation payouts.
These are avoidable operational costs, but they pile up fast. It also costs your reputation. When customers fall victim to fraud due to weak identity verification, their trust in the bank erodes. Word spreads fast, especially on social media. And trust, once broken, is expensive to win back.
Debt collection becomes increasingly difficult and inefficient. Your recovery team can’t reach delinquent borrowers if the contact number provided is inactive or fake. This slows down the process, increases your NPL (Non-Performing Loan) ratio, and eats away your bottom line.
Phone Number Verification: The Critical First Line of Defence
It’s time for banks to stop treating phone numbers as just contact info. They are identity markers–and verifying them should be a foundational part of your fraud prevention strategy.
Meet GetName and GetTags, an advanced phone number verification that can identify who the registered owner is, and what behavioral tags or patterns are associated with the number.
With these insights, banks can:
- Block Spot high-risk borrowers before onboarding
- Block fraud attempts before they escalate
- Secure OTP and digital transaction flows
- Maintain accurate borrower contactability
- Reduce operational costs and strengthen customer trust
The Bottom Line: Trust Starts with the Right Data
In a digital economy, trust is everything. And that trust begins with data accuracy—starting from something as seemingly simple as a phone number.
If your institution isn’t verifying phone numbers today, it’s already one step behind tomorrow’s fraudsters. But with the right tools and mindset, you don’t just prevent loss. You build a future of safer, smarter banking.
Last modified: July 24, 2025
