Identity fraud is a danger that faces everybody - armed with a false identity book and your bank or investment account details, con artists can access your accounts.
In fact, because of a plethora of false identity documents, banks can no longer rely on you producing your identity document to prove you are who you say you are.
Identity theft is also a concern on the internet. Fraudsters can electronically "forge" your signature. With online banking, your signature is the combination of two pieces of information: Your account number and your personal identification number (PIN).
You have more chance of becoming a victim of identity fraud than of a computer hacker accessing your online accounts by deciphering complex security measures.
Two recent cases highlight the losses you can incur if somebody uses your information to sign up for banking services in your name.
Earlier this year, a client of First National Bank (FNB) who is the managing director of a well-known trade magazine, had R100 000 removed from his account when a fraudster signed up for online banking with FNB using his details.
Following a confidentiality agreement between FNB and the client, neither wants to disclose the nature of the theft.
More recently, an Absa customer in Johannesburg lost R33 000 when somebody registered for internet banking in the customer's name using a false identity book at an Absa branch in Durban.
The fraudster also opened three savings accounts, each time using other false identity books, and then transferred money from the Absa customer's account into the sav-ings accounts.
The total amount involved in the fraud was R44 000, but Absa was able to recover R11 000.
Henri Slabbert, the general manager of Absa Direct, says the bank will refund the R33 000 to the customer and will hand the case to the police for further investigation.
Since these incidents, both Absa and eBucks have beefed up their security procedures.
Slabbert says if you wish to sign up for internet banking, you now have to visit the Absa branch where your account is held. This is so that a bank employee who knows you by sight and who knows your signature can verify your signature on the application form. Previously, you could register at any branch for the service.
A second measure that has been implemented is that you have to demonstrate to a bank employee that you have access to your accounts at an automatic teller machine (ATM) by using your ATM card or another bank card.
Although these procedures are more inconvenient for customers, they have been implemented to improve security, Slabbert says.
While you are able to sign up online for internet banking, you will not be able to transfer money into the accounts of other people or organisations until you visit your branch to identity yourself. You will be asked to define a daily limit for transfers from your account.
William Ramwell, a spokesman for FNB, says you can register online with eBucks.com using your name and identity number.
eBucks.com will then check that your identity number is valid and that the number has not been used previously to sign up. This registration, however, does not allow you to sign up for internet banking. You will also need your ATM PIN as well as other personal information to prove your identity.
Erik Larsen, a media spokesman at Standard Bank, says it is vital that you keep your ATM card number and your PIN secret.
Bear in mind that your ATM card number differs from your account number.
If somebody has access to your ATM card number and your PIN, they will be able to apply online to register for internet banking.
The good news is that you do not carry the loss if somebody gains access to your accounts without your permission.
Slabbert says the banks are legally responsible for ensuring that access to your account is properly policed.
Credit card fraud
One of the biggest stumbling blocks to internet shopping is consumers' concerns about providing their credit card details over the internet to online operators to pay for goods.
To date, Standard Bank (through Bluebean.com) and FNB (through eBucks.com) have launched "closed" shopping sites, where the bank knows both the shops as well as the customers.
You can transact safely if you shop on one of these websites.
But closed shopping sites are not the solution because consumers want the freedom to shop at any website.
Nadine van Niekerk, a spokeswoman at Absa card division, says only one out of approximately 20 000 transactions processed on the internet turn out to be fraudulent, so generally the fraud committed over the internet is very low.
The reasons for the low incidence of fraud on the internet include:
* Many sites use secure technology to process transactions;
* MasterCard and Visa International (two international card payment systems) impose severe penalties on internet merchants if fraud frequently takes place on their websites;
* The applications of internet merchants are carefully screened by banks before they are allowed to electronically process payments;
* The banks closely monitor the behaviour of merchants; and
* Merchants screen transactions that take place on their websites.
Slabbert says banks do not reveal your credit card number to merchants during electronic payments. The money is collected on the merchants' behalf by agents who must be approved by the banks.
But if you do find that money has been deducted from your credit card account without your permission, the bank will reverse the transaction at your request and the merchant will have to prove that you gave permission for the payment. If the merchant is unable to do so, he or she will carry the loss. If the merchant cannot be traced, the bank will carry the loss, Slabbert says.
It is, however, your responsibility to check your statements and to alert the bank to any unauthorised transactions on your account.
ATM and credit card slips
You don't need to be paranoid about tossing your ATM slips into the waste bin at, for instance, a shopping centre - criminals cannot access enough information from these slips to defraud you.
Nevertheless, it is better to keep your details private. You don't want to advertise the fact that you may have a large sum of money in your account.
Neither Absa nor Nedcor prints full account number on ATM slips following cash transactions. FNB and Standard Bank print your account numbers on the slips.
With credit card slips, your full account number and name is shown on the slip.
However, this information is available when, for example, you present your card to pay at a restaurant and the waiter conducts the transaction while not in your presence.
Fraudsters have been known to copy credit card details at restaurants and later put through fraudulent transactions.
Remember that although you do not carry the loss of fraudulent credit card transactions, you must notify your bank about any unauthorised transactions.