Identity Theft – Financial Cybercrime

The Legal and Financial Dangers Of Synthetic Identity Theft

Identity fraud is one of the most common types of financial crimes affecting South Africans, and now cybercriminals have raised their game with a new wave of crime known as synthetic identity theft.

Fraudsters are going a step further and combining stolen information from multiple people to create new fictitious identities that may not be real – but the consequences of your personal data being used to make one certainly are.

Here’s an overview of this new crime, what its modus operandi looks like, and how you can keep yourself safe from it while protecting your business and customer information too.

How synthetic identity fraud works

Identity theft always begins with criminals obtaining sensitive information like your ID number full name, employment information and physical address. But lately, crimes in which this information has been merged across multiple victims is becoming more common. These crimes fall into two broad categories.

Identity compilation: This is referred to by industry experts as “Frankenstein identity fraud”. Criminals will often combine the identification numbers, addresses, and other details of multiple victims to create a new false persona.
Identity manipulation: this criminal approach sticks to one identity, but alters key information about the person in order to carry out illicit activities. Changing someone’s place of employment or credit score artificially or applying for credit in their name are some examples of identity manipulation.

Synthetic identity makes law enforcement’s job even harder

Keeping tabs on all the fake identities used by fraudsters is hard enough but synthetic identity fraud is adding a new layer of difficulty to the task before law enforcement officials.

Since fake identities, compiled using information pertaining to multiple people, are becoming more commonplace, it’s becoming increasingly difficult to track down the various victims of this crime so that justice can be done.

Given the large number of data leaks and breaches that are taking place across the country, many law abiding citizens are finding themselves in the crosshairs of identity theft. The fact that their identity has been compromised becomes apparent once they receive a letter of demand or even a summons pertaining to debt that they have no memory of owing. This is a tell-tale sign that identity fraud has taken place.

Keep your identity and personal information safe with secure storage

There’s no need to become a victim of identity theft before you start to secure your sensitive documents.

Soteria’s range of encrypted automated backup packages will help ensure that your business and personal documents remain safe in the cloud, beyond the reach of cybercriminals. Browse our packages today to get started.

Self-service IDs | Identity Theft

Self-service IDs and passports: good or bad news?

The days of long lines and waiting periods running into months may be a thing of the past at home affairs, following Minister Aaron Motsoaledi’s announcement that the department will open branches in major malls across the country.

Home Affairs’ plan includes the introduction of self-service passport and ID card application and renewal terminals which are being implemented in order to speed up the ‘more-often-than-not’ slow space of issuance when it comes to official documents.

While many South Africans will be celebrating increased efficiency at Home Affairs, the new system may present some challenges when it comes to privacy and the security of personal data.

Let’s take a look at the new ID and passport application system and weigh up its risks and advantages.

stopping by the mall for a new passport?

Anyone who’s had to wait for hours to submit an ID or passport application form, only to be told that the document itself will take weeks to months before it’s ready will probably be looking forward to the new system that Home Affairs plans to implement this fiscal year.

The department has announced that it will open branches at the following malls across SA:

Cresta Mall (Johannesburg)
Southgate Mall (Johannesburg)
The Pavillion (eThekwini)
Tygervalley Mall (Cape Town)

Ahead of these locations, the first branch will be opened at Menlyn Mall in Tshwane as a test case. The other branches are scheduled for opening later in the 2022/23 fiscal year.

The department envisages this project as a way to save time and make the process of applying for official identification documents simpler and easier.
A pre-booking system that will allow citizens and residents to secure a fixed time to submit applications in person at main Home Affairs branches is also in the works and is expected to reduce waiting times even further.

Going to your local mall to apply for a passport or ID card sounds fantastic in theory, but it also means sharing your personal information on an online system – and that comes with its share of risks.

how secure will online applications be?

There’s no doubt that the government takes certain measures to ensure the safety of data that it processes during document applications, but applying for a passport at the mall means that you will be exposing your personal information to potential hacking and cyber theft attempts.

With the incidence of identity fraud still high in SA, citizens will need to be vigilant to ensure that their personal information doesn’t fall into the wrong hands.

The recent spate of fake SA passports and related crimes is a stark reminder that fraudsters can and will use your identity for illegal purposes.
To ensure that your identity is not being used by criminals, it’s essential to obtain your free credit report on an annual basis and pay special attention to any unusual emails, text messages, or post that you receive – especially if it implies that you have accounts associated with your name that you didn’t know existed.

keep your personal information safe with secure cloud storage

Information vigilance doesn’t end with ID and passport applications.

To prevent cybercrimes, it’s essential to keep all your sensitive information stored securely in the cloud. Browse our range of cloud storage solutions for individuals and families today to get started.

Have you been a victim of Identity theft? Here’s what to do now.

As a follow on from our recent blog, Identity theft? Your Personal Information is Like Gold featured last month we take a closer look at Identity Theft and how to pick up the pieces when someone else has stolen your ‘life’! Consider this Part 2.

Identity theft is not a new concept or crime. In South Africa, ID theft is rife and needs little introduction. For those who have become a victim of identity theft, the after-effects can be traumatic.

Your ID thief might have racked up thousands of Rand in loans, credit card purchases, and opening accounts. While many financial institutions and insurance providers can help you to sort this financial mess out with a protection product, if you have no backup there are a few things that you should do to rectify the situation if your identity has been stolen.

Report and replace missing documents – Many criminals strike when they gain access to personal documents such as ID books (or cards), driver’s licenses, birth certificates and passports. If you have lost any of these personal documents, or they have been stolen, make sure that you report the theft/loss by opening a case with the SA Police and apply for replacements as soon as possible. This renders the old document useless and gives you a leg to stand on if an unscrupulous person uses them to open accounts and rack up bills in your name.
Change your logins and passwords – You should do this for all your accounts and not just the affected ones and even consider opening new accounts if your bank account has been compromised.
Inform credit bureaus – If you suspect someone is trying to use your particulars to open accounts etc., make sure that you report the incident to the credit bureaus. Ensure that they are aware of the identity theft so that they can be extra cautious when account applications are checked. At the same time, check that all of your details are up to date with the credit bureaus. Incorrect details could lead to someone else being able to steal your identity.
- Recently moved address or changed your telephone number? Make sure your credit profile reflects this.
Scrutinise your accounts and credit card purchases – If someone has stolen your identity, they might be able to make online purchases using your details. Take a close look at your bills and dispute any purchases or withdrawals that were not actioned by you.

How to Avoid ID Theft Before it Happens | Have You Heard of True Identity?

A new ID theft solution called TrueIdentity has recently launched in South Africa, which could save many South Africans from the trauma of identity theft. This product is aimed at helping consumers protect their particulars. It also provides consumers with the tools required to deal with the consequences of identity theft and offers the benefits of ID theft insurance to help with the recovery of finances.

Members pay a monthly or annual subscription for this product offering through TransUnion. Once registered, the service providers regularly scour the web (and the dark web) for any information or mention of member’s details and sensitive data. If anything is uncovered, you will be advised immediately and further assisted with a course of action.

TrueIdentity empowers consumers by arming them with instant access to their information and constant monitoring of their personal data.

Share Your Experiences…

Have you been a victim of identity theft? We would love to hear more about your experience and how you handled it.

Identity theft? Your personal information is like gold – it needs to be well secured

Gold is a lot of things, but it’s not the most valuable thing you can own. What could be more valuable than gold, you ask – palladium perhaps? True, but the most valuable thing to you, after your family, is your personal information, that’s what!

When criminals start mining your data they are not hunting for your gold; they’re hunting for your personal information for the purpose of identity theft. The problem is that many people are still unaware of how easily it can happen.

What is identity theft? Identity theft is when a criminal fraudulently uses another’s personal information to make purchases, apply for credit cards, and get loans.

If you have a good credit record and a lost ID, you’re in for a lot of trouble!

Identity theft is easier than you think

Have you ever requested a credit card statement via email and been asked to provide your ID number? Have you emailed a copy of your ID to someone recently? Did you know that all an identity thief needs is your ID number along with some of your personal info such as your address and mobile number, to create fake IDs, paperwork, and complete various online applications?

Identity theft is so serious in South Africa that Carte Blanche did a feature piece on how it happens. And according to the TransUnion credit bureau, identity theft in South Africa is on the rise and consumers need to do more than they are currently doing to protect themselves.

How does identity theft work?

We hear about identity theft from time to time, but how do the criminals actually get it right?

Identity thieves can sell your ID and personal details, along with your credit profile for as much as R3 000.

When an unscrupulous individual wants to buy a luxury car, open a cell phone contract, buy groceries, or apply for an instant cash loan, they will need to prove a good credit rating, provide proof of address, copies of bank statements, and have a positive ID. Thank you Mr Smito – all of this can be created by simply acquiring your ID number. It’s a scary reality!

What to do when your identity is fraudulently used

If you detect that fraudulent purchases are being made on your behalf, here’s what to do:

Contact the South African Fraud Prevention Service to start an active investigation.
Write an affidavit detailing the situation and open a case at your local police station.
Get in touch with the companies that the criminal has racked up bills with. Explain the situation to them and ask them to investigate the purchases made.
Check your credit profile to ensure that none of your details have been changed. You can also ask the bureau to make a note on your profile that there is a suspicion of identity theft.

How to treat your personal information like gold

Want to ensure that your personal particulars never fall into the wrong hands? Here are a few tips:

Never leave your ID, driver’s license, mail, or statements lying around.
Shred all documents containing your personal details before you throw them in the bin.
Ignore those “Congratulations! You’ve won a prize!” text messages.
Don’t provide personal information to anyone that makes an unsolicited call to you. If you need the service, but don’t trust the contact you have received, contact the company directly yourself.
Check your bank accounts regularly to ensure that no unusual purchases have been made.
Don’t be caught out by phishing and digital banking fraud – no bank will ever ask for your password along with your personal details.

The time to take better care of your own identity is now. Follow the above tips to minimise the risk of becoming an identity theft victim and be sure to backup all your personal data securely, online.