By Mark Carrels
Fraudsters using stolen or copied identity documents are stealing millions of rands from unsuspecting South Africans in what is becoming one of the fastest-growing criminal activities in the world.
Since April last year, identity fraudsters have stolen more than R83-million from banks alone, while experts say identity theft worldwide already amounts to billions of dollars.
Head of forensics at First National Bank in Johannesburg, Eddie Blight, said identity fraud or impersonation theft was the fastest growing fraudulent activity in the world.
"But though the banks are a target we are declining more accounts where ID fraud is suspected due to authentication systems."
While South African banks lost at least R83-million to fraudsters using stolen or copied IDs, fraudulent claims based on stolen or fake IDs cost the life assurance industry a staggering R200-million in 2003 alone.
South African Fraud Protection Services said far too many photocopies of IDs were in circulation, helping fraudsters commit theft on a grand scale.
"Almost every bank and business needs a copy of one's ID, but what are they really doing with these IDs?" said spokesperson Patrick Cunningham.
Cunningham warned that most South Africans were not safeguarding their identity documents appropriately. And it did not help that the department of home affairs was unable to keep a tight rein on the issuing of fraudulent IDs.
There had been allegations that some employees of organisations that required ID photocopies for transactions were stealing other people's identities to buy goods fraudulently or to open bank accounts where stolen money was deposited and cashed.
Business Against Crime's project director for organised crime Graeme Wright said identity fraud was particularly rife in motor vehicle theft.
"Even though traffic authorities require original licence documents when vehicles are registered, fraudsters still manage to assume the identity of the actual owner of the vehicle."
Most of the stolen vehicles ended up being moved across the border to neighbouring countries where they were sold illegally.
The managing director of South African Banking Risk Information Centre Pierre Steyn confirmed that identity fraud was a "very, very serious" problem in South Africa, even though it was difficult to quantify.
Banks had established that identity fraud was the first step in a chain of criminal events that often ended in the transfer of money from legal owners to criminals.
He said corruption at the home affairs department, where some officials were colluding with fraudsters, was rife.
Sometimes corrupt officials helped fraudsters create new identity documents from the IDs of dead people by changing the photograph.
Fraudsters often used stolen IDs to obtain credit, resulting in lenders registering innocent people as poor payers which ruined their credit ratings.
On Friday South Africa's major banks announced plans to use fingerprint identification that could phase out the use of ATM cards. This would limit ATM theft and the fraudulent use of cards.
Approached for comment, home affairs spokesperson Stokwe Fotoyi admitted his department could not rule out that officials were involved in identity fraud.
"But we are committed to bringing corrupt officials to book. We have many immigration officers who will leave no stone unturned in arresting corrupt officials."
Fotoyi warned members of the public not to accept help from "street agents" who apparently "organised" personal documents, especially for illiterate clients, in return for a fee.
Director of Forensic Services at Standard Bank, Robin Bhagwandass, said identity theft worldwide amounted to billions of dollars.
"As for the size of the problem here, we are unable to state a figure."
He added that phishing, in which spam mail is sent to computer users under the guise of genuine transactions, was also a popular method of fleecing people of their money.
Crimeware or spyware were another popular way for fraudsters to gain illegal access to personal information with a view to commiting fraud. He said customers should be careful who they shared information with.
"Your bank will not ask you for your user ID or password. Neither will your bank request personal information that they already have on file."
"When doing internet banking, make sure that you have accessed the correct address. Ensure you have downloaded and run the latest anti-virus software. Keep your ID/drivers licence and cheque books in a secure place and dispose of statements by tearing them up," said Bhagwandass.
You should report the loss of these documents to your bankers and South African fraud prevention services as soon as possible, he added. - This article was originally published on page 1 of The Cape Argus on October 30, 2005
Published on the Web by IOL on 2005-10-30 13:54:00
© Independent Online 2005. All rights reserved. IOL publishes this article in good faith but is not liable for any loss or damage caused by reliance on the information it contains. |
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