Telkom staff in cheque scam

By Candice Jones for Telkom
Johannesburg, 15 May 2007

The telephone line-switching scam, used to authenticate fraudulent cheques, is old hat, says Telkom.

However, it is still unclear how criminals are accessing clients' financial information and creating the counterfeit cheques, it adds.

Lulu Letlape, group executive for Telkom's corporate communications, says the switching scam has "happened intermittently over a number of years".

Susan Potgieter, GM for commercial operations at the South African Banking Risk Information Centre (Sabric), says it has also seen sporadic reports of cheque fraud in which telephone interceptions were involved.

Last week, the Independent Online reported a doctor had almost lost R40 000 in a scam where criminals had tried to cash two fraudulent cheques. The criminals reported the doctor's cellphone stolen and redirected his Telkom landline so that when the banks called for authorisation, an accomplice was on the other end of the line and could authorise the cheque.

"Our investigations have uncovered two employees, to date, involved in the current 'line-swinging' scam. However, investigations are continuing," says Letlape.

Telkom says these employees have been working together with people in the banking industry to obtain access to client information. However, Potgieter notes: "As with any crime type, it is possible, but not necessary, for several individuals to collude with staff to perpetrate the crime."

She says the cheque or client information can be obtained from many places, including the victim's offices, adding that the ability to divert telephone lines is not limited to current Telkom employees.

Potgieter explains the requirements to carry out a crime like this include: a cheque, one that is stolen or fraudulently manufactured, signatures, a presenter, someone who knows how to divert or intercept telephone lines, and someone to answer the phone when an enquiry is made.

According to Sabric, Telkom is co-operating with the banking industry to identify and address any collusion with its staff members. The company also assists in investigating criminal activities that do not involve Telkom staff members, where criminals are found to interfere with telephone systems.

"Once incidents of 'line-swinging' are brought to our attention, we will investigate and take appropriate action," says Letlape.

The company says people should report similar occurrences via the Telkom fraud hotline on 080 012 4000, or at their nearest police station.