by AKANI CHAUKE
JOHANNESBURG, (CAJ News) – SOUTH African businesses have experienced a spike in fraud from the second quarter to the third quarter of 2023, according to Debtsource credit application data.
Frank Knight, Chief Executive Officer at Debtsource gives the example that according to the Q4 2023 TransUnion Consumer Pulse Survey, digital fraud and personal data security are major concerns for businesses, as 28 percent of respondents were targeted by fraud schemes in the prior three months, with 10 percent falling victim.
In Experian’s latest fraud report, 73 percent of businesses in the survey saw their fraud losses increase in the past 12 months.
Fraud schemes typically involve phishing, smishing (fraudulently soliciting information via SMS) and money/gift cards, with businesses more at risk in the event of employees falling prey to such schemes.
The balance between fraud attacks and prevention is highly dynamic, and the only way to stay ahead of fraudsters is to take advantage of the latest fraud detection technology, says Knight.
This highlights the need for better data security measures and more secure digital environments by suppliers.
Knight said recent regulatory changes have had a profound impact on commercial credit transactions.
Credit providers are now required to register and adhere to the new Financial Intelligence Centre Act (FICA) regulations.
This entails not only registration but also the identification of beneficial ownership and rigorous Know Your Customer (KYC) procedures.
“Consequently, the process of opening new accounts has become more intricate, necessitating adjustments to credit policies, applications, and the reporting of cash transactions exceeding the specified threshold,” Knight added.
– CAJ News