The vast problems experienced by South Africa`s provinces in the payment of social security welfare benefits has received widespread attention recently. The logistics of maintaining and updating databases, managing payrolls and keeping track of the thousands of pensioners who rely solely on this income for survival is a mammoth task. In response to the dilemma faced by beneficiaries who are refused payment and the widespread abuse of social security benefits, the Free State province has implemented an automated payment system estimated at R30 million, designed and developed by Face Technologies and managed by ABSA Bank.
The automated system makes use of smart card technology and biometrics to manage and secure the payment process. Smart cards operate in a similar way to ATM cards, but have an embedded chip that can hold data such as the holder`s identification number, passport number and bank account details. Biometrics enables fingerprint verification, facial recognition or iris scanning for the unique identification of individuals.
Danie Bisschoff, managing director of Face Technologies, explains: "The Central System developed by Face Technologies is linked via value-added network provider InfoVAN`s - and GovNet`s - networks to SOCPEN, the social security database. On enrollment, the beneficiary`s information is downloaded to a central database that is connected to a wide area network (WAN). Regional offices use mobile systems for enrollment and download the demographic data to file servers connected to the WAN. Photographs and fingerprints are obtained using live scanners so that the quality of the information can be checked immediately and updated easily."
The card production system managed by Face Technologies prints and initialises the smart cards, which contain encrypted data on the name and ID number of the beneficiary, as well as fingerprints and a photograph.
"The secure encryption of this information, coupled with biometric technology that enables fingerprints to be recorded and verified, prevents the abuse of social security benefits. The occurrence of fraud is also avoided by careful management of the database and a payment system which cannot be overridden," Bisschoff adds.
Information relating to the monthly payment is downloaded from SOCPEN to an automated payment system, which is linked to either a fixed point or mobile cash dispenser located at various sites in the region. Supplied by ABSA, the dispenser operates in a similar way to an ATM, but is a full multimedia system that includes a fingerprint scanner for verification, with prompts and graphics to assist the user. No pin number is required - the user simply presents his card to the dispenser and places his finger on the reader. Once the system has verified the user`s card and fingerprint, payment is transferred to the dispenser and can be instantly withdrawn.
"Details of all transactions and withdrawals are instantly recorded and retained by the smartcard to avoid over - or underpayments. The Free State Provincial Authority has access via a secure intranet to the central system developed by Face Technologies, where it can obtain up-to-the-minute management information. This solves the problem of delays in feedback and account reconciliation which were experienced in the past," Bisschoff notes.
According to Bisschoff, the pilot project, which was launched in Kroonstad in July 1997, has had a 100 percent success rate in the use of biometric fingerprint technology as a verification medium - not a single legitimate pensioner was turned away.
Rapelong Leshotho, deputy director: Social Security Directorate added that the pilot project launched in 1997 resulted in the suspension or removal of 256 beneficiaries - three percent of the total of 8554 beneficiaries on the Free State social security database for the pilot project. "This resulted in a phenomenal saving of R 1 443 840, which covered the cost of the pilot project," he said.
The system is currently being installed in the Qwa-Qwa region. Once the project has been rolled out throughout the Free State province, Leshotho anticipates a total saving for the 1997/98 financial year of R 28,5 million. "This represents three percent of the total estimated expenditure of R 950 million for Social Security," he notes.
Bisschoff concludes: "This is the first project of its kind in the country in which biometric fingerprint and smartcard technology has been successfully integrated. While many companies are wary of these new technologies, I believe that the adoption of smartcard technology will continue to grow."
Share
Editorial contacts