Jashwin Baijoo | Head | Strategic Engagement & Compliance | Tax Consulting SA | mail me |
Reparative measures may have been taken to remedy the Companies and Intellectual Property Commission hack which reportedly took place on 29 February 2024, however this information breach may have long-lasting and detrimental effects!
The process of starting and running a company in our dynamic entrepreneurial landscape can be both exciting and daunting; from navigating legal obligations to complying with local regulations, the journey can be filled with various complexities.
With all of this in mind, the last thing needed is a notice from the CIPC advising you that both your business and personal data security may have been breached:
Excerpt from CIPC Notice of Security Breach, 29 February 2024
Firewalls not foolproof
The CIPC Notice brings to light how personal and confidential data stored within CIPC’s systems can be left vulnerable.
While the CIPC has taken steps to rectify the situation, the incident stresses the importance of protecting personal and confidential information. For domestic companies and Multi-National Enterprises alike, operating in South Africa or considering expansion into this region, this breach raises significant concerns regarding the security of their sensitive data.
Taking it one step further, the Notice also highlights that even though steps were taken to mitigate the dissemination of confidential information, the hack was aimed beyond just personal information, and included credit card details used where there are personal CIPC accounts:
With the rise in cyberattack threats and data breaches, it is fast becoming common practice to entrust your corporate secretarial needs to an external team of specialists. This serves to ring-fence the information at risk, and especially since the external firm will be utilising their bank account for all your CIPC needs.
Complexities of navigating CIPC, when systems are actually online
One key advantage to outsourcing of company secretarial functions is that it adds an additional layer of security for your company’s sensitive information. Moreover, outsourcing secretarial services can provides the man-power to assign a dedicated resource, allowing you to focus on business, whilst your compliance needs are taken care of. This is especially prevalent for companies expanding operations from overseas into South Africa, which is a growing trend within our borders.
Dealing with foreign directors and members adds another layer of complexity to compliance requirements. Navigating the intricate legal landscape of a foreign jurisdiction can be overwhelming without the correct tax, legal and regulatory guidance.
In summary, the recent cyberattack at the CIPC serves as a wake-up call for entrepreneurs and companies operating in South Africa. The protection of sensitive company information is crucial, and while we cannot eliminate all risks, we can surely minimise them significantly Outsourcing secretarial services offers a proactive approach to safeguarding your data against cyber threats and breaches.
Today’s rapidly evolving business landscape has stressed the importance of outsourcing secretarial services, as not just a matter of convenience but a strategic imperative.
