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The Police Ministry says a comprehensive forensic investigation will be conducted into the police's service termination section.
This follows the arrest of several people, including a police official, on charges of fraud and corruption, related to the payment of service benefits.
Police Minister, Nathi Mthetwa, said the arrests were just the tip of the ice-berg.
He says the arrests and subsequent probe follows a complaint laid by the son of son of the late Warrant Officer Rankwane Mompati, in Pretoria last month.
Mthetwa said a syndicate may be involved in organising false dependents or beneficiaries and completing false documents, such as a proof of relationships.