Identity theft is one type of fraud that affects both businesses and individuals, and with the festive season approaching, consumers need to be more vigilant and informed.
So says Sharon Coppola, legal risk and compliance executive at information services group Experian SA, who adds: "Identity theft is widespread and don't ever think it can never happen to you because without the right precautions, it can," says.
"While banks have robust crime prevention programmes aimed at detecting and preventing identity fraud, it remains a major threat to the banking industry and mitigation thereof is a high priority," says Kalyani Pillay, Sabric CEO.
According to Experian, identity theft occurs when someone uses another person's personal identifying information, without their authorisation, in order to commit fraud or other offences, such as obtaining loans, services or credit.
"Indeed, identity theft of all shapes and sizes is frighteningly prevalent. It can be corrected, but, obviously, only if the consumer is aware of it," says Coppola, who adds that fraud awareness is critical.
Regularly checking credit reports is a good way for consumers to ensure they haven't become victims of identity fraud, says Coppola, yet few people do.
She adds that it's important for consumers to monitor their credit reports to ensure the information that populates the report is legitimate, correct and has not been tarnished in any way by illegal credit activities. "These illegal activities may be a deterrent when accessing the credit you need and retaining a healthy credit standing," she notes.
For Pillay, it's vital that consumers pay attention to account cycles so that they can identify when communications intended for them have reached them. "At some subsequent point in time, the victim discovers the fraud only when credit providers start to bill them or follow up on the payment."
Coppola recommends identity theft victims contact their credit providers and advise, via an affidavit, that the account in question has been opened under false pretences.
She advises consumers to follow a defensive strategy by regularly viewing their credit reports to ensure there are no fictitious entries to their accounts.
"Protect your ID by obtaining a credit report on a regular basis. You can access your report at any time online. There are significant benefits derived in terms of early ID theft detection. It's the responsible thing to do.
"Often, applications for credit are declined, or the applicant does not get the credit he/she wants," says Coppola. "Upon checking your credit report with a credit bureau, you may discover the reasons, perhaps explaining why the application was unsuccessful. After all, when you apply for a job, you prepare yourself, update your curriculum vitae and then submit the application. Why then should you not take the same level of care when applying for credit?"
Pillay advises consumers to store personal and financial documentation safely. Consumers must ensure they protect personal information when destroying it, by either shredding or burning sensitive documents. She advises against tearing them up or putting them in the garbage or recycling bin, adding that consumers can protect themselves from becoming victims of identity theft by not carrying around unnecessary personal information, in case it is lost or stolen.
She advises against disclosing personal information such as passwords and PINs when asked to do so by anyone via phone, fax or e-mail. "Do not write down PINs and passwords and avoid obvious choices like birth dates and first names, and do not use Internet cafes or unsecure terminals to do your banking."
Experian SA encourages consumers to take advantage of the free annual service provided by credit bureaus as prescribed by the National Credit Act, which gives them the right to access their credit reports once a year, at no cost.
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