Beware of identity theft

Identity theft can affect both businesses and individuals.

The legal risk and compliance executive at information services group, Experian SA, Ms Sharon Coppola said identity theft is widespread.

“Do not think it can never happen to you, because without the right precautions it can,” said Ms Coppola.

International Fraud Awareness Month was celebrated in November. Last week, South Africa commemorated the occasion with a National Fraud Awareness Week campaign.

The aim of the Fraud Awareness Week campaign is to encourage business leaders and employees to proactively take steps to minimise the impact of fraud by promoting anti-fraud awareness and education.

World wide, individuals lose revenue annually as a result of fraud-related crimes. Identity theft occurs when someone uses another person’s personal identifying information, without their authorisation, in order to commit fraud or other offences, such as obtaining loans, services or credit.

“Indeed, identity theft of all shapes and sizes is frighteningly prevalent. You can correct it, but obviously, only if you are aware of it,” said Ms Coppola.

The majority of consumers do not monitor their credit reports regularly.

“At some subsequent point in time, the victim of the fraud discovers the fraud only when credit providers start to bill them or follow up on the payment,” she said.

Ms Coppola recommends the following remedial steps for identity theft victims:

r Contact the credit provider and advise, via an affidavit, that the account in question has been opened under false pretences.

r Open a case with the police.

r Check out your credit status with a credit bureau like Experian SA and advise the bureau of the identity theft to ensure that your status has not been damaged.

She advises consumers to follow a defensive strategy by regularly viewing their credit reports to ensure there are no fictitious entries to their accounts.

“Protect your ID by obtaining a credit report on a regular basis. You can access your report at any time online. There are significant benefits derived in terms of early ID theft detection. It is the responsible thing to do. Often applications for credit are declined, or the applicant does not get the credit they want,” said Ms Coppola.

“Upon checking your credit report with a credit bureau, you may discover the reasons, perhaps explaining why the application was unsuccessful. After all, when you apply for a job, you prepare yourself, update your curriculum vitae and then submit the application. Why then, should you not take the same level of care when applying for credit?” she said.

Experian SA encourages consumers to take advantage of the free annual service provided by the credit bureaus as prescribed by the National Credit Act. This provides them the right to access their credit reports once a year at no cost.

Ms Coppola said that it is important to monitor your credit report to ensure that the information in the report is legitimate, correct and has not been tarnished in any way by illegal credit activities. These illegal activities may be a deterrent when accessing the credit that you need and retaining a healthy credit standing.