Malusi Gigaba
A joint partnership between the Department of Home Affairs (DHA) and the South African Banking Risk Information Centre (Sabric), which allows banks to verify the identity of their prospective and current clients using the national fingerprint database, has assisted the private banking sector to prevent large-scale identity fraud, saving the industry around R3.8-billion a year in potential losses, Home Affairs Minister Malusi Gigaba has asserted.
In a move that formalised the collaboration between government and the private sector to combat fraud and corruption, banks were, in 2009, provided access to the Home Affairs National Identification System (Hanis) to confirm the identity of various applicants.
“This system, a first for South Africa, has proved to be a potent weapon with which to stage a daring combat against identity fraud in its many manifestations.
“Reports received from banks show syndicates now know that they cannot, for instance, get away with identity document photo replacements, owing to the Hanis verification, and that identity fraud has, therefore, decreased,” he told a meeting of Sabric and the Financial Services Exchange, trading as Astute, on Tuesday.
As of December, Gigaba noted that seven banks were now making use of the
Hanis verification service, with the number of bank transactions that made use of the system now standing at 2.5-million a month and up to 150 000 a day.
With regard to the insurance industry, he added that the DHA had a memorandum of understanding with life insurers organised under the Association for Savings and Investment South Africa to help tackle the high levels of fraud plaguing the industry.
“This public–private initiative continues to provide participating companies with a direct link to the National Population Register so they can verify various aspects of personal identity and documents like death certificates; and with good results,” he commented.
After going live on September 9, 2014, Gigaba held that, in the same year, 7 360 fraudulent claims were stopped, compared with 2 093 in 2013.
The value of the claims in 2014 was slightly lower, at R402.8-million, compared with R524.6-million in 2013.
“[Our] relationship with the banking and insurance industries is vital for us. It serves to epitomise the new, smart and collaborative way to improve on our work, the services we offer and, most importantly, in moving South Africa forward.
“Our concerted efforts together to combat crimes through collaborative initiatives are bearing fruit,” he said.