ACFE International Fraud Awareness Week 2018

Cross-sector collaboration in fighting fraud and corruption

Agenda

• What’s the problem ?

• What are we dealing with ?

• Who are we dealing with ?

• Collaboration is key

• What about the consumer ?

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What’s the problem?

“77% of South African (SA) organisations said they've been victims of economic crime and fraud”.

67% of SA respondents said losses due directly to their most disruptive fraud could reach US$ 1M”.

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PWC Global Economic Crime Survey 2018 South Africa

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PWC Global Economic Crime Survey 2018 South Africa

What’s the problem? cont…

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PWC Global Economic Crime Survey 2018 South Africa

What’s the problem? cont…

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PWC Global Economic Crime Survey 2018 South Africa

What’s the problem? cont…

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PWC Global Economic Crime Survey 2018 South Africa

What’s the problem? cont…

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The Iceberg Theory

What are we dealing with ?

• Internal players

• Industry players

• Sectorial players

• Multi-sectorial players

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Who are the role-players?

• Focus is on analysis of internal data

• Individual organisations are focussing on their own data in conjunction with publicly available data

• Data sharing could be informal and haphazard

• Data sharing takes place on a formalised basis at sector / industry level

• Getting a basic view of the fraudster

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Current state

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Current state cont …

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Compromised identities

Victim of ID fraud

Fraudster/Criminal/Impersonator

Who are we dealing with ?

• 17 years ago the banking industry identified the need to look beyond competition

• Recognised the benefits of close collaboration and sharing on a formalised basis

• Criminal Justice System was experiencing challenges in dealing with the onslaught of fraud

• Meaningful contribution was required to close the net on fraud

• Saw the benefit of upfront screening of all human “touch points”

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Collaboration is key

• SAFPS is a non profit company, founded in 2001 and fully committed to the prevention of fraud in the national interest.

• SAFPS has made a significant contribution to the South African economy and to business through the prevention of billions of Rands in attempted fraud since its inception.

• The organisation is wholly funded by members. The company’s principle purpose is to enable fraud data sharing and information exchange between its members, through a centralised database.

• Members pool and share information relating to:Individual, Syndicate, Employee, Business, Financial, and Internet Fraud.

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History – who/what is SAFPS?

2001

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2018

50

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Southern African Fraud Prevention Service

Founded by Standard Bank and FNB in 2001 and membership has grown steadily over the past 17 years

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55555

Banks & Financial Institutions

Unsecured Lenders Retailers & Other Motor, Insurance & Telco’s

Screening & Bureaux Services

Standard Bank Old Mutual Finance Truworths Mercedes Benz FS Compuscan

First National Bank Capfin Woolworths Financial Services BMW FS Managed Integrity Evaluation (MIE)

ABSA Bayport FS JDG Trading SA Taxi Development LexisNexis Risk Management

Nedbank Real People Mr Price Group MTN Consumer Profile Bureau (CPB)

African Bank Get Bucks Lewis Stores Cell C Inoxico

Capitec Mazwe Financial Services RCS Cards Telesure Group Services Affiliated Members

Bank of Athens Edcon (ABSA) (Standard, Absa, FNB and Nedbank Insurance)

Trans Union, Experian, XDS

SA Home Loans Teljoy Badger Holdings ICB, SABRIC

Al Baraka Bank Multichoice Afrocentric Health Public Sector Partners

Thyme Bank Home Choice SARS

Sasfin Bank The Foschini Group Financial Intelligence Centre (FIC)

Investec Bank Ltd. MBD Credit Solutions South African Reserve Bank (SARB)

Ubank Department of Home Affairs(DHA)

Discovery Bank

50 Major Brands

• Structured database used by all members

• Data is shared (uploaded and retrieved) in a simple, structured and standardised format

• Access is restricted to members only

• Distinct access levels are assigned to users, which determines their usage of the database

• Database facilitates use across diverse industrial sectors and diverse systems

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Structured database

Reciprocal sharing of data … “Bring & Braai”

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The “bigger picture”

Have you become a Victim of Identity Theft or Fraud?

ITUS

“Every 79 seconds somebody around the world has their identity

stolen”(Javelin Strategy and Research)

Have you become a statistic?

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The incidence of identity fraud and impersonation is rife!

How does identity theft affect victims ?

“The identity theft was a bewildering, stressful experience … I worry that he/she could use my information to

victimize me again. “

Source: Identity Theft: The Aftermath (ITRC)

Emotional reactions

• Frustration / annoyance (80%)

• Fear of financial security (67%)

• Violated (66%)

• Helpless / powerless (53%)

• Loss of ability to trust (44%)

• Suicidal (7%)

Source: Identity Theft: The Aftermath (ITRC)

Deeper dive into emotional reactions

• Sought professional help (25%)

• Turned to friends & family (20%)

• Wanted professional help but

unable to afford it (13%)

Source: Identity Theft: The Aftermath (ITRC)

Behavioural & physical reactions

• Sleep disturbance (48%)

• Inability to concentrate (37%)

• Fatigue (35%)

• Headaches (34%)

• Panic attacks (27%)

Source: Identity Theft: The Aftermath (ITRC)

Impact: credit & financial

• Credit affected or denied (38%)

• Credit cards cancelled (12.5%)

• Used existing cards (12%)

• Applied for government benefits

(11%)

Source: Identity Theft: The Aftermath (ITRC)

Impact: employment

• Time off work (22%)

• Affected ability to get a job (14%)

• Changed jobs (8%)

• Lost job (6%)

Source: Identity Theft: The Aftermath (ITRC)

Impact: Housing

• Unable to rent or find housing

(16%)

• Relocating or moved (15%)

Source: Identity Theft: The Aftermath (ITRC)

The Domino Effect

• Borrowed money from family / friends (25%)

• Delayed educational opportunities (13%)

Source: Identity Theft: The Aftermath (ITRC)

SAFPS Protection

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Through our free protectiveregistration service, we saveinnocent members of thepublic from becoming victimsof impersonation. Safeguardyour identity and register lostor stolen identity books andpassports today – it’s free!

Is your ID or Passport lost?

SAFPS protection cont …

How private is your personal information ?

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Comments

Questions?

Thank you for your time!

Contact us

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“All in all, SAFPS offers a unique data sharing system that is fast, reliable, user friendly and extremely effective with the ability to search for data in a variety of fields”.

For further information, you are welcome to contact:

Manie van Schalkwyk Roy Retief

Telephone: 011 867 2234 Telephone: 011 867 2234

E-Mail: manievs@safps.org.za E-Mail: royr@safps.org.za