In today’s interconnected world, the spectre of cyberattacks looms large over businesses of all sizes and across all industries. From small startups to multinational conglomerates, every organisation is at risk of devastating cyber threats.
Last month, JSE-listed Astral Foods’ poultry division was hit by a ransomware attack that will reportedly cost the group R20-million in profit in its latest reporting period. Similarly, real estate group Pam Golding recently suffered an attack in which hackers gained unauthorised access to personal information stored on its customer relationship management system.
According to market research, the average cost of a data breach in South Africa reached nearly R50-million in 2024, which highlights the catastrophic financial impact these incidents can have on businesses.
Recent data also confirms that ransomware and digital extortion are currently among the most serious cyber threats in South Africa. On average, one out of every 15 organisations in Africa experienced a ransomware attempt every week during the first quarter of 2023. This frequency is higher than the global average, indicating a particularly high level of threat in the region.
“Despite the frequency and severity of cyberattacks, many companies do not take into account that the repercussions of a cyber incident extend far beyond the immediate financial costs,” says Ryan van de Coolwijk, product head: cyber, at iTOO Special Risks.
“Companies often focus on the direct expenses, such as IT response costs, extortion demands and operational downtime. However, the broader impact can be much more profound and long-lasting, such as lost business opportunities, potential market share gained by competitors and erosion of client trust.”
Together with potential client migration to alternative providers, the compromise of sensitive intellectual property and the potential loss of competitive advantage, these hidden, indirect costs can far exceed the initial financial impact, making cyber incidents significantly more damaging than initially perceived.
Van de Coolwijk notes that organisations should also be aware of the fact that the landscape of cyber extortion has evolved significantly. While ransomware, which involves encrypting data and demanding payment for decryption keys, was a major threat a few years ago, businesses have made strides in addressing this risk. However, cyber criminals have adapted their tactics, shifting their focus to data theft and extortion.
“Instead of encrypting data, hackers now often steal sensitive information and hold it for ransom. This can include customer data, financial records, intellectual property and other valuable assets. The threat of exposing or selling this data can be even more damaging than encryption, as it directly impacts a company’s reputation and trustworthiness,” he says.
Another prevalent threat is business email compromise, where attackers gain access to corporate email accounts to conduct fraudulent activities. This can involve impersonating executives to authorise fraudulent transfers, tricking employees into revealing sensitive information or manipulating business transactions. Such attacks can lead to significant financial losses and operational disruptions.
“Additionally, companies are often targeted by fraudulent transfer attacks, which involve tricking companies into transferring funds to fraudulent accounts. Attackers often use sophisticated social engineering techniques to convince employees or executives that the transfer is legitimate,” says van de Coolwijk.
“As cyber criminals continue to evolve their tactics, businesses must stay vigilant and adapt their cybersecurity strategies. This includes implementing robust data protection measures, enhancing email security protocols and educating employees about the latest threats and how to recognise them.”
He points out that iTOO is leveraging advanced technology to monitor the dark web, which is a significant advantage in cybersecurity. This proactive approach allows the company to identify potential threats before they materialise, providing an invaluable service to its clients.
“By deploying technology that scans the dark web, iTOO can detect early signs of malicious activity. This includes identifying stolen data, compromised credentials and discussions about planned attacks. Early detection enables us to warn clients and take preventive measures to mitigate risks,” he explains.
“The ability to look into the dark web and gather threat intelligence is a powerful tool. It helps in understanding the tactics, techniques and procedures used by cyber criminals. This knowledge allows iTOO to stay ahead of emerging threats and adapt security strategies accordingly.”