Financial Crime World

Cybercrime Epidemic Hits South African Financial Institutions

A Growing Concern

South Africa has been grappling with a surge in cybercrime cases, particularly in the financial sector, causing widespread concern among institutions and authorities. The country’s Cybercrimes Act 19 of 2020 aims to combat this growing menace by defining various types of cybercrimes, providing methods for investigation, and empowering law enforcement agencies to take action.

High-Density of Cybercrime

According to a recent report by Surfshark, South Africa has the sixth-highest density of cybercrime in the world. The country’s financial institutions have been particularly vulnerable to attacks, with several high-profile cases reported over the past two years.

Notable Attacks

  • In September 2021, the Department of Justice and Constitutional Development was targeted by a Ukraine- and Russia-based group engaged in ransomware extortion.
  • In March 2022, TransUnion, one of South Africa’s leading credit bureaus, fell victim to an attack by extortionists based in Brazil. The attackers stole a vast amount of personal data, including names, ID numbers, dates of birth, and contact details of millions of South African consumers registered with the company.

Consequences

The increasing frequency and sophistication of cyberattacks have led to a proliferation of fraudsters using stolen information for malicious purposes. Financial services institutions and electronic communications service providers are required by law to report all offenses to the South African Police Services (SAPS) within 72 hours of becoming aware of the incident.

Law Enforcement Response

To combat this growing threat, authorities have recognized the need for more rapid rollouts of investigations into cyber incidents. The SAPS has set up a 24/7 point of contact for all cybercrime reporting and is working closely with other agencies to coordinate domestic and international investigations.

Success Story

In a significant success story, investigators from the Hawks Serious Commercial Crimes Unit, US Secret Service agents, and INTERPOL recently took down a fraud gang suspected of swindling a US-based company out of EUR 455,000 in raids across Johannesburg. The operation was part of a global initiative under the framework of INTERPOL’s Global Financial Crime Task Force (IGFCTF), which involves cooperation among 14 countries to tackle cyber-enabled financial crime.

Way Forward

As South Africa continues to grapple with the cybercrime epidemic, it is clear that more needs to be done to prevent and investigate these crimes. The implementation of the Cybercrimes Act and other measures aimed at enhancing digital forensics and cyber incident response skills will be crucial in the fight against cybercrime.

Key Takeaways

  • South Africa has one of the highest densities of cybercrime in the world.
  • Financial institutions have been particularly vulnerable to attacks, with several high-profile cases reported over the past two years.
  • Authorities are working closely together to coordinate domestic and international investigations into cyber incidents.
  • The implementation of the Cybercrimes Act and other measures aimed at enhancing digital forensics and cyber incident response skills will be crucial in the fight against cybercrime.