This article details a six-step process used by fraudsters to exploit the South African Social Relief of Distress (SRD) grant system.
A Social Relief of Distress (SRD) grant was introduced during the Covid pandemic to assist people in dire need. About nine million of these R370 grants are paid out monthly now. It is potentially the basis for a universal basic income grant. Authorities have been warning of fraudulent applications for the SRD grant, and that these fraudulent applications have been squeezing out legitimate applicants by using their ID numbers without permission.
GroundUp too, has reported on an investigation by Stellenbosch University students who discovered a massive number of fraudulent applications for the SRD grant, and evidence that at least some of these fraudulent applications were succeeding. Since then, it has become clearer how the SRD grant system has been defrauded at scale. It involves six steps: First, obtain ID numbers and their associated names from one of the various large leaks of South African data. Second, open improperly verified accounts with Shoprite or TymeBank, or possibly some other banks as well. This could be done on a laptop or phone without leaving one’s home. Shoprite and TymeBank have in recent months tightened up their bank account application processes, so fraudsters can no longer continue to do this. Third, obtain improperly verified Sim cards. This is easily done by simply going to a local dodgy cellphone shop. But until recently it could even be done entirely online by registering free electronic Sim cards through Fourth, use the ID number, telephone number and bank account obtained in the first three steps to apply for an SRD grant. Fifth, wait for the grant to be paid into the account opened in step two. It seems that every month, Sassa sends ID numbers of applicants to the banks, Sars and Nsfas to check if applicants pass the means test. If the applicant isn’t paying income tax, doesn’t receive money from Nsfas and has income to their bank account of less than R625/month, the grant is paid. Sixth, launder the SRD money by transferring it out of the bank accoun
SRD Grant Fraud South Africa Identity Theft Social Welfare
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