Something that only happens in Hollywood movies or a genuine threat to South African consumers? If recent statistics are anything to go by, identity theft in South Africa and the theft of personal information is more fact than fiction. Not only have reported incidents increased by 200% over the last six years, but it also costs the economy a staggering loss of R1 billion annually.
According to Adv. Jackie Nagtegaal, Managing Director at LAW FOR ALL, identity theft in South Africa occurs when criminals steal personal information for their benefit. “The criminal fraudulently assumes the victim’s identity to obtain credit, loans or other benefits in the victim’s name, often resulting in a mountain of debt.” Apart from the financial benefits, criminals often steal another’s identity to hide their own. The “new” identity is then used to:
Criminals usually obtain private information such as ID numbers, banking and card details, home or postal addresses, telephone numbers, email addresses and signatures through practices that range from basic to sophisticated, warns Nagtegaal. Some techniques used include:
Techniques such as phishing and pharming have increasingly become popular amongst cybercriminals. Phishing is used to obtain a victim’s usernames and passwords. Usually, an email will be sent that appears to be from a trustworthy entity such as a bank, containing a link to a bogus webpage where personal and financial information is updated and collected. Pharming, on the other hand, is a more advanced technique used by hackers who obtain access to a server and redirect traffic to bogus web pages to get confidential information.
Nine out of ten times, consumers are unaware that their personal information has been jeopardised. Often the breach of information only comes to light years later when a victim’s credit application is declined by a financial institution, an angry vendor requests payment of arrear accounts or civil claims are instituted. Identity theft could have an adverse effect on a consumer’s credit profile and could be difficult to prove, but as soon as it comes to light, it is essential that the victim takes the necessary steps to avoid further loss. Here’s what to do should you fall victim:
This will help the police with their investigation. Ask the companies where your ID was used for a copy of the documents submitted by the thief.
Ask the police for the case number and a copy of the report. The bank or other financial institutions may request you to submit a copy. It’s also a good idea to take down the name and contact details of the assisting police officer.
If you haven’t already, obtain a credit report to see which creditors have blacklisted you.
Close existing and open new bank accounts. Remember to create new PIN numbers and passwords.
Confirm whether any activity has taken place in your name. Your accounts may have to be closed. Refer any disputes with creditors regarding transactions in your name to the Credit Ombudsman.
South Africa does not have specific legislation that prosecutes criminals for Identity Theft crimes. “Thieves are usually charged with common law crimes such as fraud or forgery and first-time offenders could face up to 15 years in prison where amounts involved exceed R500 000. Subsequent offenders could face punishment of 20 to 25 years or more” confirms Nagtegaal.
LAW FOR ALL’s experienced lawyers can provide legal advice and guidance on matters relating to identity theft. Be to have a look at LAW FOR ALL’s comprehensive policies. Sign up today!
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