Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and Recommendations

Zakat, a fundamental pillar of Islam, serves as a crucial mechanism for wealth redistribution and social justice. In Indonesia, with an estimated annual potential of IDR 327 trillion in 2020, the digitalization of zakat payments has become integral to a smart society. However, the convenience of dig...

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Main Authors: Hamsin Muhammad Khaeruddin, Halim Abdul, Anggriawan Rizaldy
Format: Article
Language:English
Published: EDP Sciences 2024-01-01
Series:E3S Web of Conferences
Online Access:https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/124/e3sconf_icenso2024_07001.pdf
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author Hamsin Muhammad Khaeruddin
Halim Abdul
Anggriawan Rizaldy
author_facet Hamsin Muhammad Khaeruddin
Halim Abdul
Anggriawan Rizaldy
author_sort Hamsin Muhammad Khaeruddin
collection DOAJ
description Zakat, a fundamental pillar of Islam, serves as a crucial mechanism for wealth redistribution and social justice. In Indonesia, with an estimated annual potential of IDR 327 trillion in 2020, the digitalization of zakat payments has become integral to a smart society. However, the convenience of digital zakat transactions has given rise to concerns about fraudulent activities posing as legitimate charities. This study addresses these challenges by investigating factors contributing to digital zakat fraud in Indonesia. Focusing on limited regulation, cybersecurity vulnerabilities, and the exploitation of religious trust, the research employs a mixedmethods approach. The study uncovers gaps in regulatory frameworks, emphasizing the need for revisions to safeguard personal data within a smart society context. It explores cybersecurity vulnerabilities associated with online platforms, examining their potential impact on data breaches and financial losses. The study delves into the exploitation of religious trust, offering actionable recommendations for regulatory enhancements, cybersecurity measures, and public awareness initiatives. The research advocates for a holistic approach, combining legal reforms, robust cybersecurity, and community education to ensure the integrity of digital zakat transactions, foster trust, and uphold the impact of charitable contributions in the evolving digital zakat ecosystem within a smart society framework.
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spelling doaj-art-eefa3ecbc9c0488d8b073869f211b8302024-12-06T10:11:06ZengEDP SciencesE3S Web of Conferences2267-12422024-01-015940700110.1051/e3sconf/202459407001e3sconf_icenso2024_07001Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and RecommendationsHamsin Muhammad Khaeruddin0Halim Abdul1Anggriawan Rizaldy2Faculty of Law, Universitas MuhammadiyahFaculty of Sharia and Law, Universitas Islam Negeri Sunan KalijagaCouncil for Religious Opinion and Tajdid, Board of Muhammadiyah Special BranchZakat, a fundamental pillar of Islam, serves as a crucial mechanism for wealth redistribution and social justice. In Indonesia, with an estimated annual potential of IDR 327 trillion in 2020, the digitalization of zakat payments has become integral to a smart society. However, the convenience of digital zakat transactions has given rise to concerns about fraudulent activities posing as legitimate charities. This study addresses these challenges by investigating factors contributing to digital zakat fraud in Indonesia. Focusing on limited regulation, cybersecurity vulnerabilities, and the exploitation of religious trust, the research employs a mixedmethods approach. The study uncovers gaps in regulatory frameworks, emphasizing the need for revisions to safeguard personal data within a smart society context. It explores cybersecurity vulnerabilities associated with online platforms, examining their potential impact on data breaches and financial losses. The study delves into the exploitation of religious trust, offering actionable recommendations for regulatory enhancements, cybersecurity measures, and public awareness initiatives. The research advocates for a holistic approach, combining legal reforms, robust cybersecurity, and community education to ensure the integrity of digital zakat transactions, foster trust, and uphold the impact of charitable contributions in the evolving digital zakat ecosystem within a smart society framework.https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/124/e3sconf_icenso2024_07001.pdf
spellingShingle Hamsin Muhammad Khaeruddin
Halim Abdul
Anggriawan Rizaldy
Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and Recommendations
E3S Web of Conferences
title Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and Recommendations
title_full Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and Recommendations
title_fullStr Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and Recommendations
title_full_unstemmed Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and Recommendations
title_short Securing Digital Zakat Transactions from Fraud in a Smart Society: Legal Insights and Recommendations
title_sort securing digital zakat transactions from fraud in a smart society legal insights and recommendations
url https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/124/e3sconf_icenso2024_07001.pdf
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