What Are IP-IP or IP-ID Banking Transactions?
Based on recent searches and analysis, the terms IP-IP (or IP to IP) and IP-ID refer to a method of interbank fund transfers conducted directly over the internet using encryption protocols, often called Server-to-Server (S2S) transfers. These are not standard retail banking features like ATM transfers, mobile banking, or SWIFT (the global system for interbank financial messaging). Instead, IP-IP/IP-ID is typically used for high-value transactions (often reaching billions of rupiah or more) between financial institutions, such as moving funds from off-ledger to on-ledger accounts before being sent to the recipient.
• How It Works Briefly: This transfer involves a direct connection between bank servers without relying on major intermediary networks like SWIFT (which is more secure and standardized). Confirmation messages are often sent via MT199 (a SWIFT code for special instructions), and funds are “monetized” (converted to cash) at the receiving bank. Only a few countries and banks officially support this, such as HSBC in Hong Kong/Singapore, VP Bank in Liechtenstein, or Deutsche Bank in Germany.
In Indonesia, there are no official regulations from the Financial Services Authority (OJK) or Bank Indonesia (BI) that explicitly recognize “IP-IP” or “IP-ID” as standard banking transaction methods. Digital transactions in Indonesia typically use BI-FAST, RTGS, SKN, or services like internet banking/mobile banking, which are tightly regulated under POJK No. 12/2018 on Digital Banking Services.
Are These Legal or a Form of Scam?
In general, IP-IP/IP-ID can be legal if conducted through official interbank channels for institutional purposes (e.g., international trade or inter-institutional loans). However, in practice—especially in Indonesia—these methods are highly risky and often exploited as a scam tactic. Here’s why:
Why It’s Often a Scam:
1. Lack of Official Oversight: Unlike SWIFT, which is strictly monitored by BI and OJK, IP-IP relies on standard internet encryption, making it vulnerable to hacking or falsification. Scammers often claim “IP-IP” as a quick way to transfer billions without high fees, but it’s typically a ploy to steal data or initial funds.
2. Common Scam Tactics:
• Advance-Fee Fraud: Scammers offer “partners” the chance to receive large sums via IP-IP but demand upfront fees for “administration,” “verification,” or “taxes” (e.g., Rp50-100 million). After payment, the funds disappear, and the transfer is fake.
• Money Laundering or Illegal Transfers: Used for money laundering due to its speed and lack of traceability. On forums like Reddit, reports indicate IP-IP is exploited by criminals to move illicit funds without clear traces.
• Phishing via Email/SMS: Scammers send fake emails from “partner banks” requesting data like user IDs, OTPs, or PINs for “IP-IP activation.” This mirrors other banking scams in Indonesia, as reported by OJK (with over 208,000 bank accounts involved in digital fraud in 2024).
3. Evidence from Real Cases:
• In Indonesia, OJK and Satgas PASTI (Task Force for Eradicating Illegal Financial Activities) frequently uncover similar scams, including impersonation of banks like BCA, BRI, or Mandiri offering “fast IP transfers” that ultimately steal data.
• Globally, IP-IP is deemed “relatively unsafe” and often appears in suspicious ads like “seeking IP-IP receivers for billion-euro transfers,” a clear scam indicator.
Recent IP-IP Scam Cases in Indonesia
Although specific “IP-IP” cases are rarely mentioned explicitly in recent official reports (as they’re often disguised as general transfer fraud), the trend of digital transfer scams resembling IP-IP—such as advance-fee schemes for “fast international transfers”—has surged in 2024-2025. Here are some relevant recent cases:
• High-Value RTP (Real-Time Payments) Fraud Case, 2025: According to a March 2025 FICO survey, 23% of Indonesian consumers reported losses from real-time transfer scams, up from 19% in 2023. Eight percent of cases involved losses exceeding USD 4,300 (around Rp70 million), often tied to “fast IP transfers from overseas” requiring upfront verification fees. OJK reported national losses of Rp3.2 trillion from online scams by June 2025, including IP-IP variants disguised as “global S2S transfers.”
• “Wrong Transfer” IP-IP Scam, August 2025: BCA Prioritas reported a surge in cases where perpetrators sent “mistaken” funds to victims’ accounts via claimed IP-IP transfers from illegal lending platforms, then demanded repayment plus “IP processing fees.” One case in North Jakarta caused a Rp500 million loss for a victim trapped in fictitious debt. This resembles advance-fee IP-IP scams, where perpetrators use stolen personal data to fake transfers.
• AI-Based Phishing for IP Transfers, April 2025: Optimaise.co.id reported cases of deepfake voice scams posing as “partner bankers” offering IP-IP for crypto investments, leading to a 3x increase in AI-driven fraud since 2024. Example: 311 Bogor students lost Rp21 billion to a fake “fast IP transfer” scheme involving admin fees. Kominfo confirmed a 70% rise in phishing cases in 2024, many linked to illegal transfers like IP-IP.
• International Cases Involving Indonesians, February 2025: The Ministry of Foreign Affairs reported 6,800 Indonesians involved in online scams across 10 countries (including Myanmar) since 2020, with 196 repatriated in 2024. Some cases involved IP-IP schemes for “moving illicit funds” to Indonesia, where perpetrators demanded local “receivers” pay initial IP fees, resulting in national losses of up to Rp18 trillion in 2024.
These cases highlight the evolution of IP-IP into a hybrid fraud using AI and deepfakes, making it harder to detect. OJK launched a national fraud portal in June 2025 to address this.
Tips to Avoid These Scams:
• Verify Directly: Don’t trust offers via email, WhatsApp, or online ads. Contact your bank directly (e.g., BCA at 1500888) for confirmation.
• Avoid Upfront Payments: Legitimate banks never request upfront fees for transfers.
• Use Official Channels: For large transfers, use BI-FAST/RTGS via bank apps or branches. Monitor transactions through official notifications.
• Report Immediately: If scammed, contact your bank’s call center, OJK (157), or cyber police (cyber.polri.go.id). Save chat/transaction evidence for potential fund recovery (possible if fraud is proven).
In conclusion, while there is a legal aspect at the institutional level, IP-IP/IP-ID is far more commonly used as a scam tool than a secure transaction method. In today’s digital era (2025), stick to OJK-verified services to avoid losses. If you have more details about the context, I can provide a deeper analysis!
