With tech advancements exacerbating the rising incidence of identity theft, fraud awareness is more important than ever. Read on for some of the latest fraud trends and how to guard against them.
Identity theft, or impersonation fraud, has skyrocketed by 337% this year, according to Southern African Fraud Prevention Service (SAFPS) data. Using advancements in technology and data from increasing breaches, criminals can now create sophisticated synthetic identities by combining genuine personal information with fake or false information.
Tech-savvy fraudsters
Dr Jerry Chetty, Head of Business Integrity at Santam, says fraudsters are early adopters of technology and are effectively using tech as a tool to commit various forms of fraud scams.
“The insurance industry is consistently tracking emerging risks,” says Chetty. “We recently noticed a trend where fraudsters are targeting insurance companies using social engineering to obtain policyholder information. The fraudster poses as a client or broker to acquire personal information.”
He says that Santam has seen the impact of identity theft being used in scams coming through in their investigation of fraud cases and therefore make it our priority to protect the personal information of all stakeholders. Fraudsters are also using AI in the form of deepfakes and ChatGPT as tools to commit fraud. “Case in point was an incident in which a staff member in finance at a multinational company was deceived into paying over $25 million to fraudsters due to a deepfake of the CFO,” says Chetty.
He adds that, unfortunately, identity theft cases take time to detect. “At the stage of detection, the victim has already suffered damage, and it becomes a lengthy process for them to rectify the situation. This incident underscores the urgency to stay informed and be vigilant.”
Dangers of oversharing
According to Chetty, Personal information such as your ID number, bank account details, contact numbers, address details, and retail account details, are the primary catalyst for every fraud scam and remain the most prized commodity for fraudsters. He cautions that in the digital world that we live in, where information is freely shared on public platforms, it is important to take caution not to overshare.
Fraudsters not only access personal information from the loot of data breaches which are traded on the dark web, but they are always looking for opportunities to enhance and enrich these data sets, he adds. “A method commonly used by fraudsters to trick victims into disclosing personal information is called social engineering. It is a technique based on psychological manipulation and deceit into getting the victim to reveal confidential personal information.”
The latest scam is where an unsuspecting victim receives a call from a fraudster pretending to be a police officer or a tax collection officer. The fraudster informs the victim about a pending fine or criminal case and requests the victim to pay an amount of money. In some instances, the fraudsters dress up as police officers and set up the background to appear as a police station. The authorities in India have noted an increase in this type of scam.
Stay safe
Chetty shares four tips to protect your personal information:
- Always verify and authenticate any request for information, no matter how genuine it seems at first glance. This may mean that you must call the insurance company or your broker directly to verify the request. Remember the psychological manipulation effect – fraudsters make you feel important and respected to gain your trust.
- Never share identifiable information, policy numbers, or claims numbers with strangers.
- Take extra caution when storing or disposing of insurance documents.
- Be cautious when clicking on links.
If you suspect that your personal information has been compromised – you can do a protective victim registration on Southern African Fraud Prevention Service (safps.org.za) – this is a free service. Additionally, you can obtain a free credit report from TransUnion to ensure your credit transactions are correct. In this era of escalating identity theft, it is crucial to stay vigilant and protect your personal information. With the right precautions, we can safeguard our identities.
