Bank loan fraud may run into millions

AN INTELLIGENCE-driven operation has resulted in the arrest of 11 suspects, including a policeman and a Department of Health employee, for widespread bank fraud that could run into millions of rand.

The operation – by members of crime intelligence, bank investigators and the police commercial banking team – netted the 11 suspects between Wednesday and Friday.

The policeman and Department of Health employee were arrested when they attempted to take out R95 000 and R55 000 loans from a Capitec bank in the Durban CBD.

Staff at the bank suspected documents submitted with the loan application were fraudulent and contacted the police.

According to a police source, the altered documents were impossible to differentiate from genuine documents, pointing to the skill and connections of the fraudsters.

“The pair went to the syndicate, whose members altered their payslips so that they could apply for bigger loans. The constable’s payslip was increased to a captain’s pay scale, while the Department of Health employee’s payslip was changed from R2 500 to R7 000.

“The syndicates have contacts in the banks, and those involved in the fraud go directly to the tellers on the take,” the source said.

“The probe is ongoing, but we suspect that the syndicate has manufactured hundreds of false payslips, bank statements and utility bills. The total that has been defrauded from banks could run into the millions.”

The pair led police to the nine other suspects, who are alleged to be masterminds of the syndicate, in an office in Salisbury Centre in the CBD. They were found in possession of bank and municipal stamps, as well as other evidence.

“It is alleged the syndicates would manufacture fraudulent payslips, utility bills, and so on, and approach individuals who then applied for inflated loans. Once the loans were obtained, the syndicate would share their spoils with the loan applicant,” said police spokesman Colonel Jay Naicker.

The suspects, aged between 20 and 51, will soon appear in the Durban Magistrate’s Court on fraud charges.