JOHANNESBURG-- Insurance fraud is increasing at an alarming rate and its costing insurance companies in South Africa millions of rand.
This is the message echoed by delegates at the Fraud Summit hosted by the Southern African Fraud Prevention Service in Johannesburg on Tuesday.
TransUnion Credit Bureau (Pty) Limited, a company which provides credit and information management services for consumer and business clients in South Africa, Botswana, Namibia, Swaziland, and Zimbabwe, has launched a true identity application to help clamp down on identity theft.
The high levels of indebtedness in South Africa are leading to consumers defrauding insurance companies in order to supplement their income and the insurance companies say although the law enforcers do arrest some perpetrators, the conviction rate still remains relatively low.
This is what makes it is difficult to investigate and prosecute the perpetrators. The high prevalence of identity theft is also a cause for concern. TransUnion hopes that with the launch of its identity theft App it will help consumers deal with identity theft.
Consumers have also been urged to take responsibility by protecting their sensitive information. Experts have warned consumers about the repercussions of committing fraud and have urged them to monitor their credit profile on a regular basis to help clamp down on identity fraud.
Source: NAM NEWS NETWORK