Experian SA launches new fraud prevention solution
New fraud prevention service set to save companies billions in fraud
South Africa, 16 April 2013 – Experian SA has launched the National Fraud Prevention Solution to address the significant threat of identity and credit application fraud in South Africa.
According to the South African Fraud Prevention Services (SAFPS), 56 000 fraud incidents were recorded last year and the number of identity fraud victims has increased by over 185%. Experian believes this is only the tip of the iceberg as many frauds still go undetected in the absence of more effective fraud prevention systems.
In order to address this challenge, Experian’s National Fraud Prevention Solution offers South African credit providers an integrated, real-time credit application fraud prevention tool-kit. The tool-kit highlights potentially fraudulent activity within seconds of application across a company’s own data or controlled matching against other companies’ application data.
“Prior to the launch of the new solution, we conducted a pilot programme with 12 companies from different sectors – including financial services, telecommunications, retail and automotive,” said David Campbell, the Director of ID & Fraud for EMEA at Experian.
“The pilot programme identified 1.3 million credit application matches in the shared community pool, over 209 000 fraudulent and bad applications as well as 35 000 fraud suspects. All of these applications amounted to over R1 billion in potentially prevented losses,” he said.
“Our fraud prevention tools compare new applications with previous applications and other data sets to identify inconsistencies and anomalies that indicate the likelihood of fraud occurring,” Campbell said.
“Sophisticated data matching systems are used to identify any potential syndicate frauds across the companies too. These systems may be customised by sector to enhance the interpretation of the data,” he said.
The solution has already been launched and is successful in a number of other countries including the UK and Russia.
It enables credit providers to reduce fraud related financial losses, improve operational efficiency, customer experience and reduce reputational or regulator risks.
Experian provides data and analytical tools to clients while helping businesses to manage credit risk, prevent fraud, target marketing offers and automate decision-making.
For more information about the Experian SA’s National Fraud Solution please visit http://www.experian.co.za/ or contact +27 11 799 3400.
ENDS
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc. is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2012 was US$4.5 billion.
Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
News release
Widespread scam targets debt-strapped consumers
South Africa, 12 February 2013 – “Do not pay anything up front until you have had a service of some value.”
This is the earnest warning to all consumers from Sharon Coppola, legal risk and compliance executive at information services group Experian SA.
It is a cautionary message prompted by a scam that has cost beleaguered consumers many thousands of rands since it started doing the rounds in recent months. Coppola also urges people to contact a credit bureau and get a free copy of their credit report to understand how they can manage their credit rating instead of falling prey to these scams.
Recounting the story of a victim who recently approached Experian for assistance, Coppola tells of a woman who desperately needed a second-hand car and advertised on public internet sites, in the process highlighting the difficulty she was encountering as a result of her poor credit rating.
She was then approached via email by someone who wrote that the same thing had happened to him; that he knew of an organisation that could help her; that he would arrange for her to receive a contact address.
Soon thereafter she was furnished with an internet email address, with which she engaged. Help was offered contingent upon her receiving a favourable credit record – which, the identity behind the email assured her, could be obtained upon payment to him of R3 000.
“Once I am able to secure a clean credit record for you, I can have your car ready and waiting.”
To illustrate its bona fides, the scam syndicate sent her a host of documentation liberally festooned with the logos of credit bureaus, the ombud, and a leading commercial bank.
“The forms were pseudo and the logos were reproduced from branded material readily available to the public,” says Coppola.
Once the R3 000 had been paid, the fraudsters closed their internet account and the account into which the money was paid. Unsurprisingly, the further impoverished consumer never heard from the perpetrators again.
She called Coppola to recount her dreadful experience.
“The saddest thing of all is that those who fall for the scam are those least able to afford the R3 000, since they cannot get credit anywhere else. In this particular case, the family lost their house. All they were trying to do was to get a cheap second-hand car in order to get around.
“We brought the scam to the attention of forensic investigators who said there was little they could do to track down the perpetrators because they hid behind a public website address. In effect, she lost R3 000 and she will never get it back.
“Alas, it is not the first time it has happened, and probably won’t be the last.”
As a service to the public, Experian is doing its level best to create awareness among consumers.
“Be warned; do not fall for this scam,” Coppola urges. “There are clever syndicates behind this carefully premeditated scam; syndicates that troll the web for debt-strapped consumers. Do not pay anything up front until you have had a service of some value.”
She emphasises the consumer’s right to go to a credit bureau before resorting to desperate measures and confirms that credit bureau does not remove information unless, after investigation, there is a legitimate reason for removal.
“A credit bureau like Experian is able to examine a credit rating and advise on how it can be managed, and where possible, improved. As a starting point, simply approach a bureau and request a free credit report. You can challenge the information contained in the report and could arrange for certain of the data to be excised.
“In short, make the bureau your first point of call.”
Footnote
To access your Experian credit report online and sign-up to receive credit report updates by sms and email, please visit www.creditexpert.co.za. For queries on your Experian credit report please contact Experian Consumer Relations on 0861 10 56 65.
ENDS
Natasha Horwitz Experian South Africa 011 799 3400 Natasha.Horwitz@experian.co.za
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Jonathan MahapaMeropa Communications +27 11 506-7333 |
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.