Financial Crime World

Cybercrime Threatens South African Financial Institutions

The South African Reserve Bank has issued a warning about the growing threats of cybercrime and emerging technologies to the country’s banking sector. According to a recent report, online banking platforms and mobile applications may be exploited by criminals to facilitate money laundering and fund terrorism.

The Threats

  • Online banking platforms and mobile applications are vulnerable to attacks
  • Phishing remains one of the most prevalent scam techniques
  • South African businesses suffer losses of around R250 million annually due to phishing attacks and internet fraud

South Africa is ranked among the top ten countries in the world for cybercrime, with over 90% of the banking sector offering online banking services and mobile application banking. The country also ranks seventh out of sixteen countries polled for the highest cost of a cyber breach.

Phishing Attacks

  • There were 10,722,886 phishing attacks detected in Africa in Q2 2022
  • Kenyan users were the most targeted, with Kaspersky detecting over 3 million phishing attempts in Kenya alone

The Cybercrimes and Cybersecurity Act, signed by President Cyril Ramaphosa in 2021, mandates electronic communication service providers and financial institutions to act when their systems suffer a cybersecurity attack or breach. However, many African businesses operate without necessary cybersecurity protocols, leaving them exposed to cyberattacks.

Efforts to Address Cybercrime

  • The African Union adopted the Convention on Cyber Security and Personal Data Protection in 2014
  • South Africa has implemented laws such as the Protection of Personal Information Act No. 4 of 2013 and the Cybercrimes Act
  • The Department of Police has gazetted its draft search and seizure rules for cybercrimes committed in South Africa

Despite these efforts, without serious cybersecurity efforts, opportunistic criminals are poised to reap the benefits of Africa’s internet growth story. It is crucial that financial institutions and businesses take proactive measures to protect themselves against cyber threats.

Conclusion

Cybercrime poses a significant threat to South African financial institutions. With the increasing use of online banking platforms and mobile applications, it is essential that businesses implement robust cybersecurity protocols to prevent attacks. The government must also continue to strengthen laws and regulations to combat cybercrime. Only through collective effort can we mitigate the risks associated with cybercrime and ensure the safety and security of our financial transactions.