Identity Theft ranks TOP as primary contributor to fraud
In the personal loan sector, impersonation or identity theft is the number one contributor to fraud with men between the ages of 28 and 40 being the primary targets. This is followed by credit card transaction dispute and phishing fraud.
“More and more South Africans are losing money due to identity fraud and the clever execution of the fraud often makes it very difficult to detect,” says Alfred Ramosedi, Executive for Sales and Marketing at African Bank.
The South African Fraud Prevention Service (SAFPS), say identity theft in South Africa has in fact increased substantially over the last six years. “Last year alone, we saved the banking industry R1.7 billion based on accounts that were declined as a result of a listing at the SAFPS,” says SAFPS’ Manie Van Schalkwyk.
SAFPS confirm that the scale of the identity theft is rising as more and more transactions are done electronically. “The problem is that victims usually only discover that they were the victims of identity theft once they are negatively listed for non-payment of accounts opened in their names or once their credit or loan applications are rejected,” says Van Schalkwyk.
ID theft normally starts with a stolen or lost ID book. The victim’s photograph is usually replaced with that of the fraudster who is doing the impersonation. “Armed with a fraudulent ID book, fraudulent bank statements etc. they can apply for loans, take out contracts or even open fraudulent bank accounts,” says Ramosedi.
While the theft of identity won’t cost you in the short term, it is the long-term cost that needs to be factored in. “You have to be removed from being blacklisted by credit bureaux, prove that the transactions weren’t yours and in some instances even change your identity number,” explains Ramosedi.
Ramosedi says criminals are extremely resourceful and will resort to any measures to get one’s personal information and once they set up a fake ID, they look like they are transacting as a legitimate person.
In order to safeguard yourself from identity fraud, here are some useful hints and tips to follow;
If you are worried you may become a victim of fraud, you can ask the bureaux to put an alert on your name and you will be notified in the event anyone tries to open a fraudulent account in your name.
Consumers can also lodge a Protective Registrations or register as a Victim with the SAFPS. This is a free service to consumers. Consumers can contact SAFPS on 0860 101 248 or SMS the word “protectid” to 43366 and they will be contacted directly.
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