DIGIVESTASI – Young People Vulnerable to Loan and Online Gambling Traps, OJK Highlights Rising Illegal Practices

In the current digital era, young generations are increasingly susceptible to dangerous financial traps, such as illegal online loans and online gambling. The Chief Executive of Financial Services Business Conduct Supervision, Education, and Consumer Protection of OJK, Friderica Widyasari Dewi, expressed her concerns regarding the high number of complaints related to these two practices involving young people in Indonesia.

Based on the 2024 PASTI Task Force data, 6,348 complaints about illegal online loans were reported by individuals aged 26-35. “This situation is quite alarming because many young people are ensnared in illegal loans. Additionally, the growing prevalence of online gambling also requires serious attention, as it can disrupt lives, especially when addiction sets in,” Friderica said in her written statement on Friday (January 17, 2025).

The phenomenon of illegal online loans and gambling shows an increasingly worrying trend. Easy access through digital applications, including online gaming platforms, is one of the reasons behind the rise in addiction cases. “Online gambling is very easy to set up and targets young people through various digital platforms,” she added.

Furthermore, young people are often influenced by trends such as FOMO (Fear of Missing Out), FOPO (Fear of Other People’s Opinions), and YOLO (You Only Live Once), which pose additional challenges. These factors often drive unwise financial decisions, such as opting for illegal loans or getting trapped in online gambling. A lack of digital financial literacy also plays a major role in making young people more vulnerable to financial crimes.

OJK Enhances Education to Prevent Illegal Practices

As a preventive measure, OJK, through the National Smart Financial Movement (GENCARKAN) program, continues to strive to improve financial literacy among the younger generation. One suggested approach is applying the "2L" principle: Legal and Logical. Young people are urged to ensure that the financial services they use are registered and supervised by OJK and to consider financial decisions rationally.

With ongoing educational initiatives, it is hoped that young generations will be better protected from the threats of illegal financial practices that could harm their lives.