New initiative will combat identity fraud for South African businesses

Identity-based fraud is costing South Africa billions of Rands. A leading local retail group is apparently suffering losses of up to R12 million a month. At one South African vehicle finance company, 60% of credit applications have documentation problems,

The local healthcare industry also reports losses of as much as R13 billion a year, with a high proportion directly caused by identity fraud.

In order to counter such astonishing losses, a powerful identity fraud prevention service called “Identicate” was launched today (7 November 2012) during a business breakfast at Fairlawns Hotel in Morningside, Johannesburg.

Xpert Decision Systems (XDS), the first and only 100% black owned credit information bureau, supported by Ideco Biometric Security Solutions, a world leader in biometric solutions, created Identicate to actively combat identity fraud.

Based on digital fingerprint verification, Identicate creates a link between demographic data (e.g. name, address, ID number) and fingerprint data to provide the fastest, most accurate way to authenticate consumer identity.

“Identicate allows sharing of fraud data. This is urgently needed to reinforce security and minimise risk across different companies. As a potent antidote to fraud, Identicate also highlights identity fraudsters and protects suppliers and consumers,” says Vivian Pather, Managing Director of XDS.

During the past 10 years, Ideco has supplied over 75000 fingerprint scanners which now provide accurate identity data for more than 2.5 million people across Southern Africa.

“Our fingerprint technology already strengthens security in environments ranging from mines to residential estates,” says Marius Coetzee, Managing Director of Ideco.

“This seriously large scale use of the top fingerprint technology proves two things beyond doubt. Firstly, the technology is tried, tested and proven. Secondly, it’s well-accepted by millions of local people who are accustomed to using it on a daily basis,” he continues.

“The launch of Identicate means a stricter watch will be placed on consumer data and on information bureaus like XDS who process this information. Identicate makes it simpler and faster for us to ensure accuracy and safeguard data for consumers and the organisations who need this information. It will also protect South African business by ensuring that accurate identity-based information is rapidly available to avoid the increasing losses caused by a wide variety of identity frauds,” concludes Pather.