With over 34,5-million breached accounts recorded in South Africa in the first quarter of 2024 alone, cyber threats are escalating at an alarming rate.
The country now ranks second in Africa for data breaches, with high-profile cases like the recent attack on Pam Golding highlighting the risks.
Yet, despite this growing threat, Fortinet’s 2024 Security Awareness and Training Global Research Report found that 70% of South African businesses are currently exposed to growing threats due to a lack of even basic cybersecurity awareness.
“Understanding the nature of these cyber risks is crucial for businesses looking to protect themselves,” says Nikita Naicker, PI tech and cyber underwriter at SHA Risk Specialists.
Data leaks versus data hacks
The key difference between a data leak and a data hack or breach is the intention. A data leak happens when an internal party or source exposes sensitive data, usually unintentionally, whereas a hack or breach is orchestrated by a cybercriminal who intentionally and unlawfully breaches a network to steal data or hold that company ransom for lucrative gain.
“In most cases, a data leak is accidental with the exception of perhaps a disgruntled employee sharing sensitive information,” says Naicker. “A lack of governance, cyber awareness and adequate security measures can all contribute to the likelihood of a leak but in 95% of data breaches in 2024, the incidents were tied to human error.”
Monetary gain seems to be the primary motivator for a hacker initiating a cyber hack or breach with companies that hold vast data records and confidential information being particularly attractive. These attacks often target financial data, personally identifiable information (PII), intellectual property, and trade secrets.
If a hacker can successfully infiltrate a network, they gain access to sensitive information and place the exposed company in a vulnerable position. They then leverage this position to extort the company for ransom in exchange for the safe return of the data or to regain access to their systems.
Cyber-securing your interests as attacks increase
According to US research firm, Gartner, no organisation is 100% secure against threats and can therefore only control their own priorities and investments in security readiness. Companies should take a proactive approach towards internal cyber security and risk management and ensure they educate themselves adequately on the topic while remaining vigilant.
Businesses must also implement internal policies to enhance threat detection and governance. Essential measures include employee training on cyber threats, stringent password policies, clear processes for reporting suspicious activity, and social media restrictions on work devices.
“Measures like employing cyber liability insurance should no longer be viewed as a grudge purchase, but rather a critical component of risk management,” adds Naicker. “Cyber-attacks, particularly on large corporations, are on the rise due to our increased reliance on digital platforms and the misconception that cloud back-ups alone provide sufficient protection.”
Cyber threats continue to become more sophisticated, and AI is playing a growing role in executing advanced attacks. Despite this, businesses do not necessarily need to invest in expensive new technologies. Creating a culture of cyber awareness, strengthening IT infrastructure, and maintaining stringent internal governance are effective ways to mitigate risk and a good place to start for a company.
Avoiding cyber-liability
From an insurance perspective, underwriting a cyber liability policy requires a comprehensive risk assessment. Insurers evaluate a company’s cyber posture by considering factors such as the size of the business, the number of data records stored, and the effectiveness of cybersecurity measures in place, if any at all.
Some insurers have minimum security requirements which they use as a benchmark when looking at a company’s security posture. These minimum-security requirements can be used as guidance by a company to ensure they meet a certain security standard of their own.
Ongoing compliance with cybersecurity best practices is essential for safeguarding business operations against the growing reality of cyber-crime. “It’s difficult to eliminate human error but to prevent data breaches, businesses can and must integrate cybersecurity directives into employee policies and risk management plans,” concludes Naicker.