Crime in SA under the spotlight once again
Garth de Klerk, Chief Executive Officer of the Insurance Crime Bureau (ICB)
Crime in South Africa has come under the spotlight once again and at the Inaugural International Fraud Conference, the importance of collaboration and cooperation was a theme that underpinned the key message in the fight against crime.
Whilst volatile market conditions, regulation and compliance are just some of the concerns, crime, cyber risk and new technologies are now among the top risks.
Some shocking revelations
According to the latest ACI Universal payments card fraud report, published on BusinessTech, one in three South Africans have experienced card fraud in the past year. It found that the highest amount of fraud took place on credit cards in 2016 (28%), followed by debit cards (19%), and prepaid cards (4%).
At the conference, in conjunction with the above mentioned, it was highlighted that in Australia financial crime costs the country $6 billion. The current focus is on identity theft, card not present fraud, ATM skimming, card fraud and the New Payments Platform.
It was also reported that both South Africa and Australia are facing increasing levels of card-not-present fraud, money mule activity, facility takeover, skimming and ATM fraud.
Garth de Klerk, Chief Executive Officer of the Insurance Crime Bureau (ICB), speaking about crime in the insurance sector, said among common cases of fraud were the ‘walking dead’ – people with identity documents of the deceased, multiple claims against car insurance and life policies. He said fraudsters did not act alone.
Interestingly, according to a fraud and risk focus blog, biometrics are increasingly being deployed as a second step of authentication in South Africa and the Southern African Fraud Prevention Service (SAFPS) were now collecting and sharing the voice patterns of known fraudsters. The SAFPS is also reaching out to new sectors such as healthcare insurance and the property rental market, with the ultimate aim of sharing data with the financial services sector.
Prioritising global intelligence sharing
Manie van Schalkwyk, Executive Director of the SAFPS said that, “in today’s world of constantly evolving technology and fraud threats, the importance of global intelligence sharing needs to be more of a priority. “
“One of the lessons we need to learn is how to effectively mine and utilise the data that we have available to us within our membership base, while still respecting the rule of law,” continued van Schalkwyk.
The conference, stretching over two days, was facilitated by the renowned Advocate Willie Hofmeyr who is no stranger on the topic of crime, having held a variety of very relevant senior posts, including the Head of the Special Investigations Unit of the Government, he is currently in the position of the Deputy National Director of Public Prosecutions.
“Advocate Hofmeyr brought a wealth of experience, knowledge and credibility to the conference,” said van Schalkwyk.
International sharing platforms
De Klerk said, “One of the takeaways of the conference was the creation of an international forum, tasked with the on-going responsibility to create international sharing platforms to detect and prevent fraud,” said de Klerk.
In addition to the discussions around international best practice with regards to the latest in systems and innovations, other topics discussed included; international policing practices; data privacy; suspect profiling; Bitcoin technology and of course, the constantly evolving threat of cybercrime.
It was clear from senior executives participating in the discussions that the intention to create networks, benchmark ideas and share experiences thereby improving the overall offering to our members in the South African environment will be supported and well received.
Mike Haley, Deputy Chief Executive Officer of CIFAS, a fraud prevention organisation established 30 years ago in the United Kingdom, and Dave Pegley from the Australian Financial Crimes Exchange were two of the international guest presenters. Both Haley and Pegley remarked that they were impressed with the sophistication of South African Organisations, and the effectiveness of these organisations in their respective ecosystems.
The recurring theme of the need for more effective public\private partnerships was apparent. This topic was clearly highlighted by Brigadier Scott Naidoo, Head of Interpol South Africa, in his opening address.
He cautioned: “Local data protection laws prevent information sharing, information is sensitive and organisations are reluctant to expose their footprint of their trade craft; there is covert intelligence and technology constraints.”
“Interpol can share data within 24 hours but this becomes difficult when countries do not have the infrastructure to facilitate access,” Naidoo said.
“This request from the Brigadier was instrumental in setting the tone for our future international co-operation strategies moving forward” said van Schalkwyk.
Speakers from South Africa, Australia, the UK and representation from the Netherlands concurred that a collaborative effort was the only way to combat fraud.
The on-going challenge
De Klerk says, “Creating awareness around the on-going challenge of combatting fraud, while also looking for support in future interventions is a major challenge. We certainly achieved this goal over the two days of discussion and brainstorming.”
In closing van Schalkwyk remarked that “We look forward to further interactions such as this one, within the various industries in the future, as without doubt it was an incredibly valuable forum for us to share and learn.”
Editor’s Thoughts:
There is a saying that goes, ‘two minds are better than one’ which is where the power of collaboration lies. With crime being increasingly prevalent in South Africa, it is commendable that the underpinned key message to combat crime is in collaboration and cooperation because collaboratively, we can drive real change. Do you believe crime in SA could be minimised as a result of collaborative efforts or does something else need to happen in order for us to really see the change? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected]
