October marks Cyber Security Awareness Month, a global campaign that shines a light on the importance of safeguarding against cyber threats. With so many cyber vulnerabilities present across all industries, Jackie Smith, Head of Buyers Trust - a cutting-edge bank-hosted deposit solution for homebuyers - said today’s landscape is more complex than ever before.
“Today there are billions of users, applications and devices all sharing and accessing data, and this figure continues to grow year-on-year.”
Smith believes that there is still a lot of work to be done with South Africa ranked 14th on the World Cybercrime Index among the countries posing the greatest cybercrime threat.
“The position suggests that despite some progress, South Africa remains a notable source of cybercrime, necessitating further work in enforcement, awareness and cybersecurity infrastructure.”
In Quarter two of 2024, Checkpoint highlighted a 37% increase in cyberattacks across Africa, with South Africa experiencing an average of 1,450 weekly attacks per organisation (a 4% year-on-year increase).
“IBM’s latest report also pins the cost of a data breach incident at R53.10 million – a figure that we simply cannot afford.”
According to the 2024 Cisco Cybersecurity Readiness Index, the majority of local businesses remain underprepared for cyberattacks.
“When it comes to combating cybercrime, only 5% of businesses in South Africa have reached the maturity stage and are in fact adequately prepared to fight cybercrime,” said Smith.
In addition, a sharp rise in Artificial Intelligence (AI) in recent years is only adding to the acceleration of cybercrime.
“Recent information released in South Africa indicates that FraudGPT (an AI tool found on the dark web) could in fact pose a threat to some of the most vulnerable members of our society, retirees. And while the reports focus on retirees, there most certainly is room for further targeting as it gains more ground,” she said, highlighting findings in KPMG’s 2023 CEO Outlook Survey which reported that 84% of local CEOs are concerned about the risks associated of AI.
Smith argued that the residential property sector remains increasingly vulnerable to cybercrime. “In a largely traditional industry where a homebuyer will simply transfer a large deposit to a third party like a conveyancer or estate agent, the risks are high,” she says. “Also important to remember is that many of the country’s estate agencies and conveyancing attorneys are SMEs who unfortunately lack the cyber infrastructure required.”
Smith added that while there is no data specifically linked to the property sector, a recent attack on a homebuyer who paid over R5.5 million to fraudsters is just another example of the phishing crimes currently taking place in the property sector.
“A phishing crime took place where fraudsters intercepted an e-mail trail and reminded a homebuyer to pay a deposit over to the incorrect bank account.”
In another prime example, a prominent KwaZulu-Natal-based attorney has been suspended by the Legal Practice Council (LPC) following the misappropriation of funds during a property transaction. “The attorney failed to wind up a deceased estate for more than seven years and ‘transferred’ R5 million from another deceased estate without authority. This case is a prime example of grieving loved ones being taken advantage of by those who are meant to protect them,” says Smith, adding that these are just two high-level examples of fraud currently plaguing the industry and consumers at large.
She added that a lack of cybercrime insurance in South Africa remains a prevalent issue – particularly among SMEs. “Reports by Santam earlier this year outlined that many SMEs believed that ‘it would never happen to them’, and as a result, some were without cybercrime insurance. Among its many benefits, cybercrime insurance offers peace-of-mind in a case of a data breach or cybercrime.”
Saturday Star