There\u2019s nothing like that sinking feeling you get when you realise you\u2019ve lost your wallet.<\/p>\n
Usually this isn\u2019t even related to any money that\u2019s in it, but rather the inconvenience of having to cancel all your bank cards and sort out items such as your driver\u2019s licence and ID.<\/p>
Of bigger concern, however, is the issue of identity theft.<\/p>\n
About 3 600 cases were reported last year, and the numbers are expected to rise.<\/p>
Criminals will typically use an ID document with a changed photo, open bank accounts, and then use that ID number to buy on credit and take out loans, without, of course, ever repaying them.<\/p>\n
This will result in a blacklisting at the credit bureaus, and undoing this can take months.<\/p>\n
\u201cCustomers need to be on their guard,\u201d said Nitesh Patel, head of customer financial solutions, personal banking at Standard Bank.<\/p>\n
\u201cIt\u2019s easy to throw away documents containing bank account details or other personal data, not realising the implications of this action, and the long-term costs could be great.<\/p>\n
\u201cFortunately, there are many simple ways you can protect yourself against fraud and identity theft.\u201d<\/p>\n
Below are a few tips that can greatly minimise the risk of criminals getting their hands on your personal banking information:<\/p>\n
If you suspect that your financial information has been compromised, don\u2019t delay \u2013 the sooner you act, the better. The South African Fraud Protection Service suggests you follow these three steps:<\/p>\n
1. Contact the fraud prevention division of the major credit bureaus and ask them to place a fraud alert in your file, as well as a request that creditors call you before opening or changing accounts. Also order copies of your credit report from the credit bureaus and check them carefully to ensure no additional accounts have been opened. When a company enquires about your credit status, the bureau will record this – ask for their names to be removed, so it\u2019s easy to check if someone has been using your name fraudulently.<\/p>\n
2. Contact your creditors for information on accounts that may have been tampered with. Ask to speak with someone in the security or fraud department and follow up with a letter. It is important to follow up with credit card companies in writing, because that is the consumer protection procedure for resolving errors on credit card statements. Immediately close accounts that have been tampered with and open new ones with new PINs and passwords. Avoid using easily available information, such as your mother\u2019s maiden name or your birth date.<\/p>\n
3. File a report at your local police station or the station in the community where the identity theft took place. Get a copy of the police report in case the bank or credit card company need proof of the crime.<\/p>\n
\u201cWhile anyone can fall prey to fraud or loss, being vigilant can minimise the damage,\u201d said Patel.<\/p>\n
\u201cIf you suspect foul play, act immediately – it\u2019s better to overreact than suffer the consequences of being a victim of fraud.\u201d<\/p>\n