According to a recent report, the amount of cyber attacks against companies in South Africa, Kenya, and Zambia rose by 8% in 2023. The financial consequences of these data breaches are the highest in South Africa, with an average price of R49.5 million, according to IBM’s 2023 Cost of Data Breach report.
The report also highlights that since 2015, data breaches in South Africa have increased by 73%. Cyber security is an ever-changing sector, with threats evolving faster than businesses can deploy solutions to keep hackers out.
The most serious threat to South African firms is unauthorised access to company and/or client information. In other words, data leaks and hackers continue to pose the most serious cyber security threats to local companies.
How SA businesses have responded
According to the report, 67% of SA enterprises use advanced endpoint security systems, such as firewalls, HIPS, and anti-malware. Half of local businesses utilise two-factor authentication, while 46% use a secure VPN and remote access for their servers. Generally, cyber security knowledge is good in South Africa, however attack costs are higher than in other African countries.
Investing in reliable cyber security tools and software is less expensive than repairing breaches. It’s important for companies to find a reliable and reputable cyber security services provider, like SEACOM. Hackers are becoming more skilled at their strategies and technologies, so corporations need to rely more heavily on advanced cyber security systems.
Which threats are most common?
Email phishing is the most popular method of attack against businesses (61%), followed by infiltration via compromised passwords (48%), and data breaches (44%). Furthermore, 61% of the organisations involved in the study reported breaches as a result of remote or hybrid working. Just under half of South African companies surveyed stated they continue to conduct business remotely.
Local companies claim to have increased cyber security procedures, yet hackers are still gaining access to important data and sensitive information. The financial cost of these cyber security breaches remains the greatest in South Africa.
Why data breaches cost so much
Businesses incur considerable financial losses as a result of security breaches. The direct costs of remediation might be extremely expensive, including forensic investigations, system repairs and legal fees. Furthermore, noncompliance with data privacy standards may result in hefty fines from authorities.
The financial impact of security breaches, however, extends beyond the obvious expenditures. Customer trust can be significantly compromised, resulting in reputational damage, lost business and income. Rebuilding a shattered brand image often necessitates substantial marketing and public relations investments, further adding to the costs.
In addition, affected companies may be obliged to pay customers and suppliers for the loss of their data, which increases the financial burden. All of these direct and indirect expenses could potentially bankrupt companies.
How to mitigate the financial impact
Proactive security measures must be implemented to reduce the financial harm caused by security breaches. Firstly, businesses must invest in adequate cyber security tools. Use strong security measures including firewalls, intrusion prevention systems, and data encryption. To combat vulnerabilities, regular software updates and patches are recommended.
Next, employee education must take place on a regular basis. Schedule frequent training sessions to educate personnel on cyber security dangers and precautions. This helps to reduce mishaps caused by human error, including falling prey to phishing attacks. Note that even senior staff members and IT personnel need to take part in these training workshops.
Companies also need to develop an incident response strategy. Create a comprehensive plan outlining what actions to take in the event of a breach. Assign essential people roles and responsibilities to provide a unified reaction to the incident while minimising financial loss.
Security audits should be conducted on a regular basis to discover and remedy vulnerabilities. Use industry-standard frameworks and, if required, seek outside assistance. Furthermore, all critical client data should be encrypted, as this provides an additional layer of security even if the systems are compromised.
Finally, consider obtaining cyber insurance to protect your finances in the event of a breach. This can help to cover the costs of legal bills, investigations, and other liabilities. Businesses can mitigate the risks and cost consequences of security breaches by prioritising cyber security measures and applying best practices.
Working with a trustworthy and renowned cyber security services provider is an excellent place to begin. SEACOM offers a range of cyber security services to enterprises in South Africa, ensuring that your IT systems are protected and functioning properly.
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