Strengthening Digital Security and Compliance to Prevent Credit Card Fraud in Indonesian Banking: An Sdg-Aligned Approach to Sustainable Financial Integrity

Abstract

This study examines the factors influencing fraud prevention in Indonesia’s banking credit card business, which is increasingly vulnerable to cybercrime as online transactions continue to grow. The research aligns with Sustainable Development Goals (SDGs), particularly SDG 16 (Peace, Justice, and Strong Institutions) and SDG 9 (Industry, Innovation, and Infrastructure), by emphasizing the importance of secure, transparent, and innovative financial systems. The study analyzes the effects of digital security, compliance management systems, and fraud brainstorming on credit card fraud prevention, with the competence of the three lines of defense tested as a moderating variable. Using descriptive, explanatory, and verification methods, data were collected through questionnaires and interviews with 108 supervisory personnel from credit card–issuing banks and financial institutions registered with Bank Indonesia and the Indonesian Credit Card Association. Moderated Regression Analysis (MRA) using SPSS was applied to evaluate the model. The results show that digital security, compliance management systems, and fraud brainstorming significantly improve fraud prevention, although the competence of the three lines of defense does not significantly moderate these relationships. These findings highlight the importance of integrating technology, compliance, and collaborative brainstorming to strengthen fraud mitigation and support sustainable financial integrity, while noting that competence alone may not guarantee enhanced preventive outcomes.