Be vigilant with personal details this festive season, warns the banking industry which has turned to hi-tech aids to combat rampant fraud.
Wesbank’s head of risk, Nicholas Litton, advised consumers to be vigilant with their personal details this Christmas as the season traditionally saw a spike in fraudulent activity.
He said that besides the direct financial losses that could result from identity theft, there was also the risk of the credit profile of a consumer being compromised.
“Once criminals have access to your personal information, they can assume your identity, apply for vehicle finance and thereafter acquire the asset. Should they default on the agreed payment installments for the vehicle, which is most likely the case, this can leave you with a poor credit record.
“This is also likely to prevent you from securing any form of asset financing until your record has been cleared, which is a timely and costly process as you would have to prove that your identity has been compromised,” said Litton.
He added that the Department of Home Affairs announced recently that it had eliminated 84 000 illegal “duplicate” IDs over the past year. However, a further 130 000 were still to be recovered.
“These alarming statistics do not bode well for the unsuspecting consumer.”
Following the introduction last week by the Department of Home Affairs and the SA Banking Risk Info Centre (Sabric) of its Home Affairs National Identification System (Hanis) to help combat identity theft, several banks said they had similar safety measures in place to safeguard customers.
Last week FNB announced that it had successfully tested and rolled out a biometric identification and verification system which allowed for online verification of customers through their fingerprints.
The chief executive of FNB’s Smart Solutions, Line Wiid, said the system used real-time fingerprint verification linked to Hanis.
“We continue to use innovative measures to make banking safe and convenient for our customers – in this instance, by reducing identity fraud. With the rise in identity theft it is crucial that we adopt measures that not only protect us as a bank but also protect our customers. Biometrics verification is one way to build trust with our customers,” said Wiid.
She said the bank had been piloting the biometric verification scheme since July. The system not only validated fingerprints against the bank’s own database but also against the national database held by the Home Affairs Department.
“It is important to note that the system is not used as a credit-scoring tool for our customers but to verify that the person applying for a loan is in fact who they claim to be. Combating identity fraud is everyone’s responsibility. Businesses and corporates need to play a role and support government’s initiatives in fighting crime.”
South Africa’s youngest major bank, Capitec, said this week that its biometric system had been introduced in 2009, although it was not yet linked with Home Affairs.
Carl Fischer, marketing and corporate affairs executive at the bank, said the system gave clients more peace of mind as it allowed immediate verification and instant account access.
“The biometric system has been implemented in all of our branches and demonstrates how we use innovative technology to drive down costs while enhancing security and making client processes easier. Moreover, important information on the client’s internet profile or bank account cannot be changed without their fingerprints being present.”
Absa Bank also announced last week that it was involved with an online fingerprint verification system which it had piloted since last year.
Alfred Ramosedi, Absa’s managing executive for face-to-face channels, said: “Being a customer-centric organisation, Absa will embrace any endeavour that seeks to protect our clients against crimes such as fraud and identity theft.”
He added that during a pilot period at seven branches, seven fraudulent cases – where applicants tried to use the identities of dead people to open accounts – were detected.
“From an Absa perspective, this initiative is part of a bigger programme to increase efficiencies in our account-opening process, thus making it easier for customers to conduct business with the bank. Through this programme we also aim to reduce paper consumption.
“This is significant, especially as environmental considerations become increasingly critical to our business processes and practices. Ultimately, the overall customer experience will be improved.”
Litton provided consumers with the following tips to help keep them from becoming the victim of identity theft:
l Keep your personal items such as your ID, passport and credit card information in a safe and controlled environment as criminals can easily duplicate your details without your knowledge.
l Be careful what information you disclose over the internet.
l Activate a profile with a recognised credit bureau as this will allow you to check your credit record 24/7.
l Obtain at least two credit reports of your profile each year with the credit bureau.
l Should you receive account statements or bills that are in your name but do not belong to you, contact your bank or the credit provider immediately. - Cape Argus