Over the past few years, it has become increasingly clear that cybercrime attacks are a major problem in South Africa. South Africa experiences the most cybercrimes in Africa, with “more than half of South African firms” being victims in 2022. In 2013, a South African Banking Risk Information Centre report stated that R2.2 billion is lost annually to cybercrime in the country, which greatly impacts the economy — and that number has only risen since. A common form of attack is ransomware, in which important files or entire machines are encrypted and a ransom must be paid to regain access. In most cases, paying the ransom is simpler and cheaper for organizations than attempting to decrypt the files themselves. Such attacks have a particularly strong effect on South Africa’s vulnerable populations, particularly the poor.

How Cybercrime Impacts the Economy and Most Vulnerable

One of the most severe impacts of cybercrime is the negative effect it has on a nation’s economy. Attackers tend to target developing countries, which struggle with unemployment and generally lack defined cybersecurity infrastructure. For example, a 2023 report by Statistics South Africa determined the official unemployment rate to be 32.6%, which is the highest in the world.

The unemployed are both vulnerable to scams and sometimes willing to participate in them to make ends meet. These scams can range from job access to financial services such as banking and the poor sometimes see such methods as ways to make easy money. As a result of the cybercrime in South Africa, fears about fraud can prevent people from taking advantage of online services. For example, online classes or courses are a great way for the poor to access education; however, the potential for cybercrime hinders the ability for them to help reduce poverty.

Solutions

To rectify this worsening situation, several actions are occurring to fight cybercrime in South Africa. For example, INTERPOL worked with AFRIPOL to launch a four-month Africa Cyber Surge II operation in April 2023, which was successful in identifying 14 cybercriminals and more than 20,000 cyber networks. Across the 25 participating countries, there was an estimated loss of $40 million due to these networks. Trend Micro, a private cybersecurity company, also contributed to the INTERPOL operation, assisting in uncovering malicious infrastructure and providing a great example of a positive public-private partnership. This operation was only the start of positive solutions to cybercrime in South Africa.

The government has also taken the help of U.S.-based organizations like the U.S. Trade and Development Agency (USTDA), working to build solutions that protect against digital threats. South African representatives met with U.S. cybersecurity companies in 2020, working on a reverse trade mission that used American innovation to help strengthen South Africa’s online defenses.

Future Steps

There are several crucial steps that are occurring to continue South Africa’s progress. To start, investing in cybersecurity education can be a critical part of stopping major cybercrime for good. In particular, focusing on vulnerable groups like the poor would allow them to recognize and protect themselves against attacks. Improving the education system would also empower individuals to escape poverty, working toward South Africa’s sustainable development goal to eradicate extreme poverty. One example of such an effort is the creation of the Absa Cybersecurity Academy, which helps marginalized youths gain cybersecurity certification. Not only does this provide a wealth of opportunities to the poor, but it can also ensure that people can better deal with cyber attacks.

Strengthening law enforcement can also help take quick action against cybercrime in South Africa. Data indicates that a high proportion of cyberattack victims choose to pay ransoms to regain access to files rather than using other methods like backups to restore their information. Better law enforcement can help victims explore other options and potentially find and arrest cybercriminals before they can orchestrate multiple attacks. The government has already started to take action, such as with the Cybercrimes Act of 2019, which criminalized several cyber offenses and regulated cybercrime jurisdiction. Additionally, improved systems for reporting and tracking cybercrime can expedite the law enforcement process.

Looking Ahead

As developing countries continue to digitize, cybercrime will continue to be a major threat to general populations — especially the poor. The best way to protect South Africa and other nations’ people is to keep working on solutions through international collaboration and cooperation. The progress that South Africa is making is a great example of how governments and multiple organizations can come together to tackle cybercrime, protecting the poor for generations to come.

– Namit Agrawal
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