Dead Man Walking a growing challenge in SA

A ‘dead man walking’ – or woman for that matter – is no longer a rarity in South Africa. Identity theft is creating a growing number of the ‘living dead’, and the problem can only worsen unless data security improves, warns leading life assurer Liberty Life.

Fraudulent death claims are a focus area in the life office’s strategy of constantly enhancing its anti-fraud defences.

“Identity theft is a growing problem worldwide, not only in South Africa,” says Clayton Thomopoulos, head of fraud prevention at Liberty Life Group Forensic Services. “Unfortunately, awareness levels in our country are still low, leaving individuals, government departments and financial service companies open to attack by increasingly sophisticated fraudsters.

“Life offices are particularly watchful for fraudulent death claims. This type of scam has occurred for many years, but the long-term trend is for the ‘living dead’ to become more numerous.

“Financial implications can be substantial, but the trouble and inconvenience for innocent victims are also severe. It can take months for a person to ‘get his or her life back’ if he or she is registered as dead. Social grants and other benefits will be stopped. It can be a living hell for the victim.”

With sufficient personal information, a fraudster is in a position to open a life policy on the victim, access bank accounts or apply for credit.

Thomopoulos, a Certified Fraud Examiner, says at least three modern trends increase our vulnerability to identity theft:

1. Cellphones as data storage devices – many people log personal details, including ID numbers, passwords and account numbers, on cellphones. When the phone is lost or stolen, the information can be accessed by criminals. Often, the cellphone user focuses solely on the loss of the phone and does not realise it can open the ‘data door’ for identity thieves. Don’t store information like this on your cellphone, advises Liberty Life.

2. FICA requirements – the need to provide personal information to financial service providers for FICA purposes prompts many people to make photocopies of their ID book and proof of residence. Often people forget how many copies have been made and make little effort to keep them secure. All FICA copies should be kept safe.

3. Growth of telemarketing – it is no longer unusual for call centres to phone people at random with so-called special offers. The call is unsolicited. No previous relationship may exist. However, consumers can be easily fooled into believing the request for personal information from the stranger on the line is a marketing or research exercise. Don’t give out personal information or details of bank accounts and other financial products. Check with your own financial service providers before making any response. Similar caution is advised when email marketers ask for personal information.

Thomopoulos adds: “South Africans have to become more vigilant. Information has value; especially to a criminal. We have to keep it under better control.

“Some modern trends and new technology platforms can increase our vulnerability. But technology and modern devices can also stiffen our defences. For example, you might consider buying a document shredder as your next must-have appliance.”