Southern African Fraud Prevention Service NPC

Transcription

1 Southern African Fraud Prevention Service NPC

2 History who/what is SAFPS? SAFPS is a non profit company, founded in 2001 and fully committed to the prevention of fraud in the national interest Based on UK Model CIFAS The organisation is wholly funded by members. The company s principle purpose is to enable fraud data sharing and information exchange between its members, through a centralised database- Closed user group sharing SAFPS shares confirmed fraud and not convicted fraud, retaining info for 10 years Members pool and share information relating to: Individual, Syndicate, Employee, Business, Financial, and Internet Fraud Provide a tool for consumers who are victims of fraud or want to protect their identity to load information free of charge. 2

3 Board and Governance Membership SAFPS is a controlled and administered by a Board of Directors, elected directly by the Members. Membership of SAFPS is approved by the Board application for membership is available only to business entities. The Chairperson and Vice Chairperson are elected by the Board. The full time Executive Director is responsible for the day-to-day running of the SAFPS operations, assisting the Board to achieve its strategic objectives. SAFPS manages a trusted database that is carefully administered to ensure that data is secure and of a high standard. Members sign an Agreement and agree to comply with SAFPS s Code of Practice. Members pay an annual membership fee, calculated according to the size of the organisation and usage of the database. There are no additional per enquiry or user licence fees. Members access the database via Application Processing System, Web-services, Batch & the Internet Members select staff members who require access to the database. Users are granted access only once they have been trained and registered by SAFPS. 3

4 Southern African Fraud Prevention Service Founded by Standard Bank and FNB in 2001 and membership has grown steadily over the past 16 years

5 45 SAFPS Members - December 2017 Banks & Financial Institutions Micro /Macro Finance Retailers & Other Motor, Insurance & Telco s Screening & Bureaux Services Standard Bank Old Mutual Finance Truworths Mercedes Benz FS Compuscan First National Bank Capfin Woolworths Financial Services BMW FS Managed Integrity Evaluation (MIE) ABSA Bayport FS JDG Trading SA Taxi Development LexisNexis Risk Management Nedbank Real People Mr Price Group MTN Consumer Profile Bureau (CPB) African Bank MBD Credit Solutions Lewis Stores Cell C Inoxico Capitec (via Compuscan) Get Bucks RCS Cards Telesure Group Services Bank of Athens Mazwe Financial Services Edcon (ABSA) (Standard, Absa, FNB and Nedbank Insurance) Affiliated Members SA Home Loans Teljoy Badger Holdings Trans Union, Experian, XDS Al Baraka Bank Multichoice Afrocentric Health SAICB Thyme Bank Home Choice SABRIC Sasfin Bank Investec Bank Ltd. Ubank The Foschini Group SARS 5

6 Reciprocal sharing of data. Bring & Braai D a t a I n Banks & Financial Institutions Sector Data Micro/Macro Finance Sector Data Retailers & Others Sector Data SAFPS Database Motor, Insurance & Telcos Sector Data Screening & Bureaux Services Sector Data D a t a I n D a t a O u t Consolidated Data View D a t a O u t 6

7 Broad Categories of Fraud Reported Impersonation Forged Documents Misuse of account through fraudulent conduct Employee Fraud Insurance Fraud Internet Fraud Business Fraud 7

8 Usage in the broader Financial Industry SAFPS data is extensively used in: Credit extension Human Resources Collections Forensics departments Insurance Health Care Cyber Crime 8

9 Summary of Statistics December 2017 Fraud listings increased by 56% YTD Protective Registration up by 75% YTD Victims Listings up by 52% YTD Total Database records Fraud Database records Protective registration Victim listings

10 Bank Impact in 2017 Banks* fraud listings increased by 15% Banks saved R2.2 Billion Banks savings increased 29% Return on Investment in Rand value - R1: R546 * ABSA, SBSA, NED, FNB (Excl Wesbank) 10

11 Projects Increase Effectiveness a) Workflow b) Training, Best Practice and Compliance c) Creating Awareness i. Media ii. Newsletter iii. Social Media iv. SCAM Site d) New Pricing Model e) Data Analyses i. MIS ii. Dashboards Competitive Stats iii. Trends on database/syndicates f) Networks i. SAICB/SABRIC ii. International Conference iii. Global Financial Crime Network iv. Industry Networks 11

12 Projects Target Non-Traditional Market a) Africa b) Health Care Industry c) Insurance d) Agents New Products a) Smart Fraud Search b) FACED c) Profile of a fraudster i. Credit Bureau Data ii. Big data (unstructured data) d) Voice Biometrics i. Fraud database ii. Centralised Voice Database e) Cyber Crime f) Sim Swap Fraud g) Data Sources 12

13 Value SAFPS Members are entitled to: Access to more than records in the Centralised Fraud Database. Sharing of Fraud Data and Alerts. Multiple Search Facilities and Cross Matching. Sharing of Employee Fraud and Employee Application Fraud MIS Reports Training and Communication SAFPS Offers Members of the Public (Individuals): Free Protective Registration to individuals, when their ID Book is lost or stolen. Free protection to Victims of Impersonation when their personal information has been used by a fraudster. Enhanced Fraud Knowledge and Awareness through various Media Channels 13

14 Do know who you are dealing with? Victim of ID Fraud? Fraudster/Criminal/ Impersonator? Genuine Person? Customer / Employee / Supplier 14

15 Power of Collaboration and Data Analyses by ScoreSharp SAFPS provided all data to ScoreSharp Fraudsters Victims Protective Registration Credit bureau data were attached day before listing and 12 months prior Control group of We display data comparing the Victim, PR, perpetrator and control group Followed by categories of fraud 15

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25 Other criteria tested Number of Secured Loans Number of Unsecured Loans Number of Revolving/Instore card and Credit Card % utilisation of Revolving/Instore/CC cards Ratio of overdue amount to monthly installment Maximum delinquency in last 180 days 25

26 Fraud & Victim of Impersonation Listings 6,19% 1,90% 0,87% 1,09% 1,47% 0,43% 0,43% 0,11% 87,34% 0,05% 0,11% Count by ID Number Outstanding Warrant Fraudsters_Insurer2 WalkingDeadList BrokerAgentRedFlag_Insurer4 SAICB Investigations Suspicious/Fraudulent Claims Fraudsters_Insurer3 FSB Debarred Brokers Fraudsters_Insurer1 StaffDishonesty Suspicious/Fraudulent Policies Count of ID Number Outstanding Warrant 87,34% Fraudsters_Insurer2 6,19% WalkingDeadList 1,90% BrokerAgentRedFlag_Insurer4 1,47% SAICB Investigations 1,09% Suspicious/Fraudulent Claims 0,87% Fraudsters_Insurer3 0,43% FSB Debarred Brokers 0,43% Fraudsters_Insurer1 0,11% StaffDishonesty 0,11% Suspicious/Fraudulent Policies 0,05% Grand Total 100,00% 26

27 Protective Registrations 2,67% 1,33% 1,33% Count by ID Number 6,67% Outstanding Warrant WalkingDeadList Fraudsters_Insurer3 StaffDishonesty Fraudsters_Insurer2 88,00% Count of ID Number Outstanding Warrant 88,00% WalkingDeadList 6,67% Fraudsters_Insurer3 2,67% StaffDishonesty 1,33% Fraudsters_Insurer2 1,33% Grand Total 100,00% 27

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31 In Summary Fraudsters are not industry bound Power in sharing data In one industry Across Industries Across Fraud Prevention Bodies Stronger Customised Products between SAFPS and ICB Stronger data analytical capabilities for ICB Use SAFPS data in Underwriting stage to minimize risk and losses Collaboration is the only way forward 31

32 For further information, you are welcome to contact: Manie Van Schalkwyk Telephone: