Warning over ‘synthetic’ identity theft in South Africa

Criminals are creating synthetic identities by blending real personal details with fabricated information—a trend that has been further exacerbated by technological advancements and the surge in data breaches.
This is according to Jerry Chetty, the head of business integrity at Santam, who noted that the insurer had flagged an alarming rise in sophisticated identity theft.
Chetty said Santam is concerned about the impact of identity theft in scams discovered during fraud investigations.
He said fraudsters are quick to adopt new technology and are effectively using it to commit various fraud scams, especially regarding identity theft.
Personal information, such as your ID number, bank account details, contact numbers, address, and retail account information, is the main target for fraudsters and is often used in various scams.
Synthetic identity theft is when a fraudster creates a false identity by combining real and fake identifying information.
For example, a synthetic identity may be created by stealing a real ID number and combining it with a false name, date of birth and address.
This new, fake identity is then used to commit acts of fraud.
For instance, a finance staff member at a multinational company was deceived into paying over $25 million (approx. R450 million) to fraudsters due to a realistic fake video of the CFO.
The 2024 Digital Identity Fraud in Africa Report revealed that rapid digitisation across Africa has also correlated with rising incidents of all kinds of fraud, including digital identity fraud.
The report, which uses data from the last four years, shows that the rate of digital identity fraud on the continent has risen yearly since 2019.
As of the end of 2023, the average rate of biometric and document fraud has surged by 17%. This implies a concerning uptick in fraudulent activities and suggests that fraudsters are continually refining their deceptive tactics.
“Unfortunately, it takes time to detect identity theft cases, and by the time they are discovered, the victim has already suffered immense damage.
“Rectifying the situation becomes a lengthy process for the victim. This incident emphasises the urgency of staying informed and being vigilant,” said Chetty.
In today’s digital world, where information is readily available on public platforms, it’s crucial to be cautious about sharing too much personal information, said Chetty.
Personal information has become more accessible via the dark web due to the increasing number of recent data breaches, he added.
Some of this personal information may be of limited use to fraudsters, so they are always looking for opportunities to enhance and enrich these data sets.
This enables them to successfully perpetrate a wide range of fraud scams, including vehicle financing fraud, investment scams, and opening false retail accounts.
Social engineering is another common technique used by fraudsters to deceive victims into disclosing personal information.
It is based on psychological manipulation to trick the victim into revealing confidential personal information.
The insurance industry is continuously monitoring emerging risks.
Recently, Santam has observed a trend where fraudsters are targeting insurance companies using social engineering to obtain policyholder information.
The fraudsters pretend to be clients or brokers to get personal information. Chetty noted that the insurer had identified persons of interest and is working with law enforcement to apprehend these individuals.
To better protect your information, Chetty suggests:
- Always verify and authenticate any request for information, no matter how genuine it seems at first glance. This may mean that you have to call the insurance company or your broker directly to verify the request. Remember the psychological manipulation effect – fraudsters make you feel important and respected to gain your trust.
- Never share identifiable information, policy numbers, or claims numbers with strangers.
- Take extra caution when storing or disposing of insurance documents.
- Be cautious when clicking on links
If you suspect that your personal information has been compromised, you can register as a protective victim on the Southern African Fraud Prevention Service (SAFPS)—this is a free service.