Watch out! Identity theft is on the rise

Identity theft is one of the fastest growing crimes in the world. Experts believe that someone's identity is stolen somewhere in the world every two seconds. It occurs when an individual's personal information such as his or her name, date of birth, Identity (ID) Number or credit card details are used by another individual to commit identity fraud. In the context of injury on duty claims, the thief uses the information to commit fraudulent injury claims.

RMA has observed an increase in the identity theft trend, especially on injury claims of a higher severity. There are three common identity theft scenarios that RMA have come across on specific claims. The first one involves a male claimant/employee who uses an ID number and names of a female. The second scenario involves a claimant/employee who uses an ID number of a deceased individual and lastly, a claimant/employee who steals an ID book and replaces a photograph with their own.

Types of identity theft that occur most frequently under compensation fraud

Employment identity theft

Employment identity theft occurs when someone uses another person’s identity number on a work application form. The thief uses the stolen ID number and their own information to earn salary/wages from their employer.

Benefits identity theft

Benefits identity theft refers to the use of a victim’s benefits by an identity thief. This can happen when a thief intercepts claims and pension payments, but more commonly, thieves have been applying for claims and pension benefits with the name and ID numbers of their victims.

Employers are encouraged to take the necessary steps to identity theft and to create awareness about the negative impact of identity fraud on insurance claims payments.

The Importance of Screening Employees

It is important to properly screen employees before they take up employment so that in an event of an accident, they don’t face challenges with the RMA claims process. The consequences of submitting a fraudulent claim is not only limited to financial loses to the claimant but extend to family members who are dependants, particularly in a case of a fatal injury.

Conducting the necessary criminal background checks on potential employees can be good predictors of potential fraud.

If an Employer Member starts experiencing an increase in the number of fraudulent claims due to identity theft, insurance premiums would be adjusted to factor in the risk.

RMA’s Response to Flagged Claims Due to Identity Theft

Should RMA suspect or obtain evidence that a registered claim is fraudulent, the claims process stops immediately until proven otherwise. An investigation process will kick off allowing all affected parties to provide supporting evidence and state their case. Each case is dealt with on its own merits. RMA’s investigation and decision-making processes are centred around the principles of fairness, transparency and equality.

When Employer Members and claimants are contacted about a potential identity fraud case, it is advisable that they cooperate with RMA and ensure that the matter is resolved speedily.

Once an investigation is finalized and the decision taken is in favour of a claimant, the claims process would continue as normal and the necessary benefits due to the relevant people would be paid out in full without any further delays.

Fraud Risk Mitigation Strategies to be Considered by Employer Members

• Conduct background checks
  • Screen all potential employees, whether they are applying for permanent or contract positions
  • Verify identification documents and banking details
  • Check for criminal records
  • Check employment history
  • Request for proof of residence
• Fraud Awareness
  • Invest in robust training programs to help workers recognize identity theft risks and follow best practices for data security.
• Data Security
  • Limit access to sensitive information, and keep it separate from lower-priority operational data.
  • Ensure all electronic data is encrypted and stored in secure databases with the proper access controls
• Implement an anonymous fraud hotline to encourage employees to report wrong doing

Report unethical behaviour or suspicious claims related to injury on duty accidents to the RMA Tip-Offs Anonymous Hotline using the following contact details:

FreeCall: 0800 21 22 56
Email: tip-offsline@tip-offs.co.za
Website: www.tip-offs.com