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Johannesburg - Consumers can stop insurance fraud by guarding their personal details, the Association for Savings and Investment SA said on Tuesday.
A document such as a pay slip or a bank statement can provide
an experienced identity thief with enough information to perpetrate fraud in your name," deputy CEO Peter Dempsey said in a statement.
In times of economic hardship this kind of fraud tended to
increase.
"Years of experience have taught internal investigators that
fraudulent activity against life insurance companies and their
clients is likely to increase as earning money the honest way
becomes harder.
"Not only are criminals becoming more desperate, they are also
becoming more sophisticated."
Insurance fraud was often considered a low-risk, high-reward
game for criminals, far safer than other crimes like drug
trafficking or armed robbery, he said.
Life companies regularly encountered cases where criminals used
personal information of unsuspecting consumers to take out life
policies in their name, with the aim of submitting fraudulent death claims later, or to collect commission.
He referred to case that made headlines last year, involving a
Kenyan syndicate that operated in South Africa. It got hold of
boxes filled with salary slips of government employees in
KwaZulu-Natal and the North West province.
These were sold tounscrupulous financial advisers who used the details on the slips, together with a forged signature, to write policies for people without their knowledge.
- Sapa