In a recent presentation to business leaders, Hugo van Zyl, CEO of the South African Insurance Crime Bureau (SAICB), spelled out the reality of the situation. "Cloned vehicle and cross-border syndicates are a growing concern, thanks to our porous borders and the fact that crime prevention stakeholders aren't yet pooling resources effectively. Data sharing is the key."
Of the R8.5 billion vehicles stolen, R4.9 billion's worth are taken across the border; R3.1 billion stay in SA as cloned vehicles and R514 million end up in 'chop shops' across the country.
To make matters worse, last year approximately 39,000 vehicles re-appeared into the system, costing a fortune for the insurance industry to pay out claims where they were unaware that these vehicles were in fact cloned. When you insure a cloned vehicle, insurance companies don't have to pay out because the incorrect vehicle is reflected on the books.
Car dealerships continue to be targeted by criminals stealing directly from showroom floors and wash bays. This is confirmed by Ian Adendorff, head of Dealer Business at Tracker. "Dealerships continue to be hit hard by syndicates due to their lax controls. There is a real need for dealers to be more vigilant in protecting their stock on their premises. While stolen vehicle recovery technology is highly effective, preventative measures by dealers to secure their assets will make the job of the criminals a lot more difficult."
Today, tech-enabled syndicates have upped their game and have the ability to take over the identity of the vehicle owner in numerous scams. Panel beating shops fall prey to this, as criminals impersonate the vehicle owner, pay the excess of the claim at the shop and drive off with the vehicle.
Social media is proving a fruitful channel, too. When people complain on the Facebook page of the manufacturers they receive an email from the 'official' website of the vehicle company, saying they will collect the vehicle and repair it for free. Members of the syndicate arrive and the owner never sees his vehicle again.
Van Zyl cited further trends on the rise being the hijacking of trucks, 'yellow metal' vehicles, trailers and cargo, accident staging, and false documentation sophistication. Exotic sounding scams like 'hula hoops' - where a vehicle owner who cannot afford the repayments any longer, arranges with criminals to take the vehicle off his hands for a small amount, but then lodges a fraudulent claim for the hijacking of his vehicle at the vehicle's full value, as well as 'phantom passengers' - falsely claiming that a passenger was seriously injured in an accident, are also ominously prevalent.
By the same token, he also shared the positives - the increased involvement from SAPS, SANDF, and SADC countries, the pound clean ups in Gauteng, Lesotho, Mozambique and Swaziland, and vehicle testing stations and Provincial Vehicle Crime Forums.
When it comes to technology, vehicle tracking and micro-dotting companies, car rental companies and banks are playing a big role. "Partnership between micro-dotting and tracking companies are starting to make inroads and this is an example of taking a stand together," Van Zyl concluded.
