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New identity fraud prevention service

Identity-based fraud is costing South Africa billions of rands. A leading local retail group is apparently suffering losses of up to R12 million a month. At one South African vehicle finance company, 60% of credit applications have documentation problems, with 30% of applicants supplying fraudulent identities.

The local healthcare industry also reports losses of as much as R13 billion a year, with a high proportion directly caused by identity fraud. In order to counter such astonishing losses, a new identity fraud prevention service called Identicate was launched late last year during a business breakfast at Fairlawns Hotel in Morningside, Johannesburg.

Xpert Decision Systems (XDS), the first and only 100% black owned credit information bureau, supported by Ideco Biometric Security Solutions created Identicate to actively combat identity fraud. Based on digital fingerprint verification, Identicate creates a link between demographic data (eg, name, address, ID number) and fingerprint data to provide the fastest, most accurate way to authenticate consumer identity.

“Identicate allows sharing of fraud data. This is urgently needed to reinforce security and minimise risk across different companies. As a potent antidote to fraud, Identicate also highlights identity fraudsters and protects suppliers and consumers,” says Vivian Pather, MD of XDS.

“This seriously large scale use of the top fingerprint technology proves two things beyond doubt,” says Marius Coetzee, managing director of Ideco. “Firstly, the technology is tried, tested and proven. Secondly, it is well-accepted by millions of local people who are accustomed to using it on a daily basis.

“The launch of Identicate means a stricter watch will be placed on consumer data and on information bureaux like XDS who process this information. Identicate makes it simpler and faster for us to ensure accuracy and safeguard data for consumers and the organisations who need this information. It will also protect South African business by ensuring that accurate identity-based information is rapidly available to avoid the increasing losses caused by a wide variety of identity frauds,” concludes Pather.

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