Brokers need to ensure client's personal information is kept safe

Candice Sutherland, Business Development Consultant at SHA Specialist Underwriters.

According to a report released at the 35th annual Crime Stoppers International (CSI) conference held at the end of 2014, identity theft occurs every 79 seconds worldwide. With insurance brokers constantly handling large amounts of confidential client information, now more than ever, it is imperative that that all personal information is permanently kept safe and secure in order to ensure that their clients and their clients’ homes are well protected.

With the more cunning techniques that criminals are using, more homes are at risk of being broken into due to personal information being leaked about policyholders and their various assets. According to the South African Crime Statistics released by the South African Police Service, which indicated that there was a 7.4% rise in home burglaries between April 2013 and March 2014.

To help mitigate the chances of personal information falling into the hands of wrongdoers, legislation has been put into place to protect policyholders. South Africa’s Protection of Personal Information Act (POPI), which was implemented in 2014, seeks to regulate the processing and collecting of personal information.

While many brokers are very careful when handling sensitive and confidential information, criminals are becoming smarter and are willing to do anything to get their hands on personal information that will assist them with their illegal activities.

The biggest area of vulnerability has been the IT systems that are used by brokers. In the past year, we have seen countless IT systems falling victim to hacking. As brokers issue and maintain insurance policies, often on their own IT systems, they need ensure that these systems are well protected against criminal activity.

By gaining access to clients’ personal information, criminals are able to see detailed home content lists, vehicle registration details, expensive jewellery valuations, security system details and other confidential personal information. It is with this information that criminals decide which homes to break into and what will be the easiest way to do so.

Another area of weakness is the scanning machines used to upload this information. In many cases, personal information is often manually scanned and uploaded on to the computer. A huge risk lies with these scanning and photocopying devices, which often store all scanned items in its memory. Should the information on the device’s storage be hacked, the criminals will be able to access all the material on the device and use these details for fraudulent activity.

It is the responsibility of all brokers to ensure that they comply with all regulations set out to reduce any potential risks that could lead to the leaking of confidential information. It is essential that the client is confident that they are dealing with a broker who will store all their information in an environment that is guaranteed to protect their privacy.