ADF STAFF
Whenever disaster strikes, the lure of easy money through scams, frauds and schemes is sure to follow.
The COVID-19 pandemic has been no exception in South Africa, and some fear rising use of the internet and social media will make it easy for cybercrime to spread throughout the continent.
Recent research in South Africa shows an increase in online fraud corresponding to the pandemic.
A June survey by credit reporting agency TransUnion on the financial impact of COVID-19 in South Africa found that 41% of respondents were targets of attempted digital fraud related to the pandemic, and 7% were victims.
“Fraudsters are always looking to take advantage of significant world events,” TransUnion Africa product director Keith Wardell said in a news release. “The COVID-19 pandemic and its corresponding rapid digital acceleration brought about by lockdowns is a global event unrivaled in the online age.”
TransUnion reported that fake insurance is the most common COVID-19-related online scam with 27% of South African respondents saying they were targeted — a 10% rise over TransUnion’s first quarter research.
The next most common scams involve unemployment benefits, followed by third-party retail fraud involving fake websites selling legitimate products.
“By analyzing billions of transactions that we screened for fraud indicators over the past year, it has become clear that the war against the virus has also brought about a war against digital fraud,” Wardell said.
In a recent survey, 68% of South African respondents said they or their families had experienced fraud on social networks since the start of the pandemic.
TransUnion data showed that digital fraud attempts against businesses increased 44% in the past year compared to pre-pandemic levels.
As South Africans have shifted to working from home in large numbers, cybercrime threats also have shifted, bringing phishing and ransomware to the forefront.
In its “State of Ransomware 2021” report, British software security firm Sophos surveyed South Africans and found that 24% had experienced a ransomware attack in the past 12 months.
On the continent, South Africa and Zambia are among the countries hardest hit by ransomware, the report stated.
Writing for South African website ITWeb, François Amigorena, founder and CEO of IS Decisions, described how ransomware has become the dominant cybercrime on the continent.
“Never before have companies in Africa been subjected to extortion on such a massive scale as they are today. And while there have been a number of high-profile cybercrime arrests made by law enforcement over the past few years, cyber criminals continue to evolve and diversify their arsenal.”
The average cost to recover data stolen in ransomware attacks in South Africa was $447,097.
The pandemic clearly has created a host of opportunities for cybercriminals. As COVID-19 vaccines roll out in several countries, counterfeits are being marketed online.
Last year, South Africa’s central bank warned citizens against scammers posing as officials, coming to homes to “recall” banknotes and coins they said were contaminated with COVID-19.
In the early months of the pandemic, the World Health Organization (WHO) reported a fivefold increase in the number of cyberattacks it experienced. It also noted a rise in scam emails impersonating the WHO that targeted the public to send donations to a fake fund.
“Technology adoption continues to rise in Africa,” Amigorena wrote. “However, with this growing prosperity and digitization comes new risks and vulnerabilities that could undermine progress.
“In order for African organizations to continue to grow and realize their full potential, it’s vital to implement effective security initiatives to stop the rising tide of cyber threats.”