South African Fraud Prevention Guide

for MarisIT Clients

History and Role of the SAFPS?

• SAFPS is a non profit company, founded in 2001 by 2 banks and is wholly funded by the members.

• SAFPS is fully committed to the prevention of fraud, facilitating fraud data sharing between its members, through a centralised database.

• SAFPS has made a significant contribution to the South African economy and to Members through the prevention of billions of Rands in attempted fraud since its inception.

• SAFPS-listed fraud is non-competitive. The co-operation & communication is mutually beneficial to the community & in the national interest.

• Members pool and share fraud information relating to:Individuals, Employees, Businesses, Financial, and Internet Fraud.

Prevention and Combating of Corrupt Activities Act 12 of 2004: Section 34

Fraud Definition: “It is the unlawful and intentional making of a misrepresentation which causes actual prejudice or which is potentially prejudicial to another.”

(NB: Prejudice or potential prejudice to the consumer = benefit to the fraudster)

• Fraud by false representationE.g. False ID, inflation of salary or company revenue.

• Fraud by failing to disclose informationE.g. Failure to disclose convicted cases of criminal behavior.

• Fraud by abuse of position E.g. Employees who abuse their position to commit fraud.

Fraud Offences

• Fraud Offences:

– theft

– fraud

– Extortion (bribery)

– forgery

– uttering a forged document (presenting any doc. as genuine)

4 Major Banks’ Cost Saving / Prevention Benefit

2015: R1.8b

2016: R1b+

2017: R628,5m – 1ST 6 months

PRODUCTS, SERVICES AND BENEFITS PROVIDED BY TO MEMBERS &

MEMBERS OF THE PUBLIC SAFPS Members’ benefits & services:

✓More than 111,000 confirmed fraud records✓879 confirmed business fraud records✓Sharing of Fraud Data and Alerts✓Multiple Search Facilities and data Cross Matching.✓Sharing of Employee Fraud and Employee Application Fraud ✓Significant Savings derived from Fraudulent Transactions Prevented✓MIS Reports – Member Matters✓User Training and Communication if required

SAFPS Offers Members of the Public & Consumers:

✓ Free Protective Registration to consumers, when their ID Book is lost, stolen or compromised in any way even before fraud has been perpetrated

✓ Free protection to Victims of Impersonation –when their personal information has been used by a fraudster after the loss.

✓ Peace of Mind

✓ Enhanced Fraud Knowledge and Awareness through various Media Channels

Definitions: SAFPS Code of Practice 1.3 Definitions

• Convicted fraud: when a perpetrator is found guilty of the crime of fraud after a trial and a court of law has handed down a conviction.

• Confirmed fraud: when a SAFPS Member has fully investigated the incident, confirming that a fraud was perpetrated, with retention of all the credible evidence that will suffice to open a case of fraud at the SAPS.

Definitions:SAFPS Code of Practice 1.3 Definitions

• Saving: is the event when the Member was able to completely prevent or stop the fraud occurring due to data obtained from the SAFPS database enabling an informed decision to be made that safeguarded the Member from being defrauded.

• Loss: is the event when the Member was defrauded as a result of a fraudulent activity being perpetrated thus suffering a loss through the disbursement of funds or a never-to-be paid credit facility.

SAFPS rules for a listing

• Every case listed by Members must be a CONFIRMED fraud.

• Every case MUST be backed up by credible evidence.

• Standard of Proof must be reached:

“The Standard of Proof is that in all instances Members’ cases MUST be prosecutable, via a formal complaint made to the SAPS. Members must have carried out checks of sufficient depth and intensity to satisfy this Standard of Proof and must retain a record of the checks for the required retention periods. The offence must be clearly identifiable.”

SAFPS rules for a listing (continued)

• Filing must be confirmed as Fraud

– Show that intention of consumer was to obtain an undue benefit

– Consumer conduct must constitute a criminal offence

– SAPS criminal case # not a requirement

• Members need sufficient Credible & Proven Evidence

– To prosecute, if so elected, via a report to SAPS (‘Standard of Proof’ must be met)

• Consumers must have been Notified about how their personal data would be used by

– Filing member & SAFPS to send letters of notification

SAFPS rules for a listing (continued)

• Name & address details……….

– Select correct title from dropdown list

– Select correct gender to match title & ID

– Insert address for SH cases as per Fraudsters’ un-scrubbed submission

– Insert address for Victim cases with the Innocents’ correct details

– Provide all Victim telephone numbers & e-mail addresses

– Provide both physical and postal addresses for sending notifications

– SH fraud address must be the place / address of incident & not capture site

• Specific building or branch, street, suburb, town / city & province

– Postal Code is very important for fraud mapping & analysis

• Fraud case details…………Do Not ‘Scrub’ the Fraud App. information

– Correct Category & sub-category that accurately relates to incident e.g.

• Cat 1: False ID & Name

• Cat 2: Impersonation of Another

• Cat 4: Other Forged / False Documents

– As much info as possible & additional descriptive notes in Fraud Description text box

– Name each scanned doc. e.g. false payslip / ID for SH or correct ID for Victim

– Un-scrubbed info assists in comparing the fraud v the innocent

– Savings Value = Loan App / Credit Score value of fraud before prevention

– Loss Value = Actual value of fraud after the event & not prevented

SAFPS rules for a listing (continued)

SAFPS Fraud Case TypesIdentity Fraud:

A fraudster either assumes the identity of an innocent party or uses a false / bogus identity to obtain goods and /or

services.

Mis-use of accounts:

Obtaining an account or credit facility with the deliberate intent of using the account or credit facility fraudulently

and evading payment.

Other abuse of documents:

Using false or temporary driving licences for vehicle finance.

Employment Application Fraud:

False, stolen or doctored documents.

Fraudulent Insurance Claim:

Material falsehoods or False documentation or social media posts e.g. photos show person is not disabled or gives

details contrary to the claim.

Category Cat No

False Name and ID 1

Impersonation (fraudster’s details) 2

False Employment Details 3

Other Forged Documents 4

Victim of Impersonation 5

Misuse of Account, through Fraudulent Conduct 6

Employee/Employment Application Fraud 7

Insurance Fraud 8

Internet Fraud 9

Business Fraud/Person Unknown 10

Suspected Fraud (Declined) 11

Disputed Incident 12

3 Distinct Types of Listings on SAFPS

▪ SH00123456

• The Fraudster’s & Fraudincident details that caused the fraud incident

• Listed by Members ONLY

• Some details are matched to Victim or PR listings

• Letter issued by SAFPS to address info given by members

• Alerts ONLY to Members re extra caution & not enforced SAFPS decline

VICTIM00456789• Innocent party details• ID has been compromised• Listed by Members re own

fraud cases • Listed by SAFPS for non-

member fraud cases• Letter issued by SAFPS for

positive listing • Alerts for extra checks• Victim not to be auto declined but reviewed

❖ PR00987654

• Innocent party details

• 2ND Level of Protection for Victims on SAFPS

• Listed by SAFPS for Members & non-member fraud cases

• Listed ONLY by SAFPS

• Letter issued by SAFPS for positive listing

• Alerts for extra checks• PR not to be auto declined but

reviewed

Actions after a SAFPS Fraud search and a positive fraud match is returned

• Do Not auto-decline decisions based solely on SAFPS matches

• Use SAFPS “matches” as part of holistic decision-making process

• Investigate all / relevant matches

– Must investigate innocent Victims of Impersonation or Protective Registrations

• Investigation outcomes:

– No fraud with Member but positive with another Member: Member may accept application or reject/close facility

– Fraud with Member: Member Re-files own case & reviews corrective actions on own fraud case

Victim of Impersonation – Victim listing

• A protective & warning listing requested by the Victim of Impersonation & fraud.

• Listed by SAFPS Member w.r.t. identity fraud, for the consumer’s protection.

• Listed by SAFPS as requested by Members of the Public for non-member fraud incidents.

• Reporting to SAFPS:

– Landline: 011867 2234, Monday to Thursday 8:30 – 16:30 & Friday 08:30 – 15:00

– SMS 43366 – type “Protect ID”

– E-mail safps@safps.org.za

– website www.safps.org.za

• SAFPS needs a certified copy of your:

– ID

– Proof of Residence

– Affidavit stating the reason for the required Victim of Impersonation listing

• SAFPS will provide you with written confirmation of your Victim Ref. No. once finalised.

Protective Registration – Listing

• Requested by Victims of the crime of fraud or for future fraud prevention.

• Personal documentation stolen / lost / compromised or leaked information.

• Service administered ONLY by South African Fraud Protection Service – SAFPS.

• Protective Registration is a service that is offered FREE OF CHARGE by SAFPS.

• Reporting to South African Fraud Protection Service - SAFPS:

– Landline: (011)867 2234, Monday to Thursday 8:30 – 16:30 & Friday 08:30 – 15:00

– SMS 43366 – type “Protect ID”

– E-mail safps@safps.org.za – scan and submit your documents

– website www.safps.org.za

• SAFPS needs a certified copy of your:

– ID

– Proof of Residence

– Affidavit stating the reason for required Protective Registration

• SAFPS will provide you with written confirmation of your PR Ref. No. once finalised.