Mobile Banking Data Security in Indonesia: Challenges, Solutions, and Policy Implications

Abstract

The advancement of mobile banking in the era of the Fourth Industrial Revolution has become a major driver of digital transformation in Indonesia’s financial sector. This service not only improves transactional efficiency but also plays a vital role in promoting financial inclusion by reaching communities previously excluded from conventional banking. However, rapid growth has also introduced critical challenges regarding data security. This study employs a qualitative approach through literature review to examine global trends, national conditions, key threats, and available solutions. The findings reveal that phishing, malware, hacking, and data breaches remain dominant threats in mobile banking ecosystems. Meanwhile, technical solutions such as encryption, multi-factor authentication, biometrics, as well as artificial intelligence and blockchain technologies have proven effective, yet their success highly depends on users’ digital literacy. Furthermore, national regulations lag behind international standards, requiring more proactive policymaking and continuous education. This research emphasizes that a holistic approach integrating technology, digital literacy, and adaptive regulation is essential to safeguard public trust in mobile banking.