Fraud does not always start with a suspicious transaction or a system attack. In an increasingly digital business process, risk can also arise from documents that are falsified, manipulated, or signed by parties whose identity and authority are difficult to verify.

Contracts can be altered after the approval process. Purchase orders can be approved by unauthorized parties. Signatures can be copied from one document to another. Without an adequate mechanism to verify the identity of the signer and the integrity of the document, a company can face risks far greater than a simple administrative error.

The losses are not always immediately visible in financial statements. Beyond the value of the transaction itself, a company can face investigation costs, disputes, operational disruption, and loss of trust from customers and business partners.

Fraud Remains a Real Problem for Businesses in Indonesia

The Indonesia Fraud Survey 2025, published by ACFE Indonesia Chapter based on 417 respondents, shows that corruption is the most frequently reported form of occupational fraud at 47.6%, followed by asset misappropriation at 40.2% and financial statement fraud at 12.2%.

The survey also shows that among private companies, 22.78% of cases fall in the loss range of more than IDR 1 billion up to IDR 50 billion.

These figures show that the impact of fraud can reach significant value, especially when it involves transactions and corporate controls.

Digital Documents Are Not Automatically Secure

Digitalization does make document processes faster. Documents can be created, sent, approved, and stored without any physical process.

But digital format does not automatically guarantee that a document is authentic.

One example is the use of a scanned signature or a signature image on a PDF document. Visually, the signature may look identical to the original. But a signature image does not, by itself, provide a mechanism to verify the identity of the person signing or detect changes made to the document after it was signed.

This risk becomes even more important when documents are used for high-value transactions or decisions with legal and financial consequences.

Contracts, procurement documents, financing agreements, HR documents, purchase orders, and management approval documents require a stronger level of control, because the validity of a document can directly affect a company's decisions and obligations.

The Cost of Document Forgery Does Not Stop at Transaction Value

Financial Loss

Falsified documents can be used to support unauthorized transactions, alter agreed values, redirect payments, or grant approvals that were never actually given, resulting in significant financial loss to the business.

Investigation and Dispute Costs

When the authenticity of a document is called into question, a company needs to gather evidence to determine what actually happened.

This process can involve examining documents, communications, approval history, and the parties involved, up to legal proceedings if the dispute continues.

These costs often emerge after the incident has occurred and can involve resources from multiple functions within the company.

Operational Disruption

Fraud can also create obstacles in business processes.

A disputed document can cause delayed payments, contracts that must be reviewed again, procurement processes halted temporarily, or transactions with customers and partners that must be re-verified.

The more business processes depend on documents, the greater the potential for a chain reaction of effects.

Loss of Trust

Another loss that is harder to quantify is the loss of trust.

When customers or partners question the authenticity of a company's documents, the organization does not only need to resolve a single case. It also needs to demonstrate that its internal processes have adequate controls.

In a digital business ecosystem, the ability to prove the authenticity and integrity of a transaction becomes part of the trust placed in a company.

The Role of Digital Signatures in Strengthening Document Control

A Digital Signature can serve as one layer of control in the document management process.

According to Government Regulation No. 71 of 2019 (PP No. 71 Tahun 2019), an Electronic Signature functions as a tool for authentication and verification of the signer's identity as well as the integrity and authenticity of Electronic Information. For a certified Electronic Signature, the regulation requires the use of an Electronic Certificate issued by an Indonesian PSrE (Certification Authority).

In the context of fraud prevention, this mechanism provides several layers of control.

Identity Verification

A certified Electronic Signature links the signing process to the signer's identity through an Electronic Certificate.

This provides a stronger basis for verification compared to simply using a signature image on a document.

Protection of Document Integrity

An Electronic Signature is also tied to the integrity of electronic information.

Any change to the electronic information associated with the signature after the signing process must be detectable. This gives the company a mechanism to identify when a signed document has been altered.

Verifiable Proof of Approval

The electronic signing process is also designed to show that the signer has given approval to the electronic information associated with that signature.

In business processes, this capability can help a company provide clearer evidence of who signed a document and how it was processed.

Strengthening Control on High-Risk Processes

Implementation of digital signatures should be prioritized for processes with high transaction value, that require formal authorization, or that carry significant legal and financial consequences.

Findings from ACFE Indonesia can serve as one reference for identifying areas that need attention. In the Indonesia Fraud Survey 2025, procurement is the unit with the highest fraud risk at 17.43%, followed by operations at 14.29%, executive/top management at 13.56%, and finance at 6.54%.

These areas can become part of a company's evaluation in determining which processes should receive stronger document controls first.

This approach also makes digitalization more targeted. A company is not simply replacing manual signatures with digital ones, but strengthening controls at the process points with the greatest risk exposure.

From Document Digitalization to Digital Trust

Digitalizing document processes should not stop at reducing paper use.

Greater value emerges when a company can build a process that allows the signer's identity to be verified, the integrity of the document to be maintained, and the approval process to have evidence that can be examined.

A Digital Signature is one component that can support this need.

By using a certified Electronic Signature through a PSrE, a company can strengthen control over the signer's identity, the integrity of electronic information, and the approval process within digital documents. This framework is also aligned with the function of Electronic Signatures as regulated under Indonesian law.

For companies looking to strengthen security and control in their document signing process, Indocyber is a partner in providing PSrE-based E-Sign solutions to support digital signature needs and document digitalization.

Want to know how E-Sign can be implemented in your company's business processes?

[ Consult with our team now! -> Certified Digital Signature ]

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