Despite having world-class cybersecurity systems in place, South African companies remain vulnerable to increasingly sophisticated cyber breaches, particularly malware attacks that target and compromise sensitive customer data.
A recent high-profile case is that of a leading local vehicle tracking company that suffered a ransomware attack in June that resulted in some of its confidential customer information being published online last week, as the company refused to pay the ransom demanded by hackers.
Ryan van de Coolwijk, product head: cyber, at iTOO Special Risks, says that companies must prepare themselves adequately to withstand the inevitable attacks that target organisations across all industry sectors.
This is especially important at a time when South Africa is entering a new era of digital accountability, where companies that fail to safeguard customer data could soon face class action lawsuits from affected individuals. The reputational and financial fallout could be devastating.
“Regulatory bodies are increasingly recognising the real-world consequences for individuals whose personal information has been compromised, particularly the risk of identity theft, financial fraud and long-term reputational damage,” warns van de Coolwijk.
“In response, there’s a clear shift toward placing greater accountability on companies to implement robust data governance processes and safeguard customer information responsibly.”
POPIA is no longer the only regulatory force in play. The Financial Sector Conduct Authority (FSCA), which oversees financial service providers, and the Prudential Authority (PA) have introduced their Joint Standard, signalling a more assertive stance on data protection and cyber resilience.
However, while robust firewalls, encryption protocols and employee training are essential and could protect companies from facing legal liability in the event of a breach, these measures alone cannot guarantee immunity against increasingly sophisticated and innovative attacks.
“Cyber criminals are no longer just targeting the weak links; they are exploiting even the strongest systems. Malware attacks are evolving rapidly, and no organisation is immune. The question is not if a breach will occur, but when and how well you are prepared to respond,” says van de Coolwijk.
He explains that what companies need is a dual-layered approach, namely proactive defence systems to detect and deter threats and cyber insurance to act as a safety net when defences are breached.
“Cyber insurance solutions offer more than financial protection; they bring expert incident response teams, legal guidance and reputation management to the table when it matters most. Essentially, cyber insurance is no longer a luxury but a strategic imperative. It is the difference between a company that survives a breach and one that is defined by it,” he says.
“We are already seeing the tangible ripple effects of greater accountability across industries. Medical providers, for example, are now actively seeking cyber insurance, not just as a precaution, but as a requirement. Some medical aids have made it clear: without adequate cyber cover, payments will be withheld.”
This marks a significant shift in how data security is being operationalised across sectors, as regulatory bodies and industry stakeholders are no longer treating cybersecurity as a theoretical risk.
The cost of failure is no longer just reputational, but also legal and financial. This should be a warning for businesses to urgently rethink their cyber resilience strategies.