Hi-tech systems help to fight fraud

TECHNOLOGY could soon be a powerful tool in the fight against corruption.

By using technology to digitally secure a digital signature in a QR code embossed onto a document or encrypted onto a digital platform, it could prevent alteration of documents.

iPlate, a South African company, has developed anti-fraud technology to create the digsig, which secures the authenticity of the information by securing it digitally by protecting the original data and rendering it impossible to alter or forge.

“People still put a lot of trust in paper documents as proof of authenticity. In this age of artificial intelligence and the Fourth Industrial Revolution, many companies are spending billions on cybersecurity but still using a rubber stamp to authenticate highvalue documents like bank statements, academic qualifications and proof of payment,” said iPlate’s chief executive, Dev Naicker.

Most fraud requires the falsification or alteration of documents. Corrupt deals would not happen if it wasn’t possible to change the information on an original document. According to Naiker, printed documents can be easily altered.

“It’s the loophole that many fraudsters are using to defraud the system. This is particularly prevalent in the tender process, where most companies are still heavily reliant on documentation – which can be easily altered by corrupt officials.”

The digsig was developed to assist corporates and government to fight fraud and corruption.

People still put a lot of trust in paper documents

Dev Naiker IPLATE CHIEF EXECUTIVE

“It is hard to change the moral fibre of a corrupt person. But it’s easy to make it harder for them to conduct their corrupt activities,” said Naiker.

Chad Thomas from IRS Forensic Investigations said there were laws in place to protect against technology-related crimes and the reporting thereof.

“Use of technology and associated laws such as the Financial Centre Intelligence Act, the Prevention and Combating of Corrupt Activities Act, the Electronic Communications and Transactions Act, and the Regulation of Interception of Communications and Provision of Communication-related Information Act, amongst others, have gone a long way in reducing fraud and corruption by identifying red flags that could be as a result of money laundering or the proceeds of crime.

“In the case of the Electronic Communications and Transactions Act, suitably qualified cyber inspectors need to be trained up and appointed, a process that has been taking quite some time.

“This particular act also creates a special type of electronic signature, known as an ‘advanced electronic signature’ (AES), which is regarded as particularly reliable form of online signature. Where a law requires a signature, only an AES will be valid.

“As necessary as these laws are, and however strict the penalties are that can be imposed, should these laws be contravened, the fact remains is that there is such an increase in technology-related crimes that the departments tasked with monitoring these acts are at times overwhelmed or do not have sufficient capacity,” he added.

“It all comes down to the consumer to educate and protect themselves against online fraud.”