SABS cybersecurity data breaches – a wake-up call

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SABS cybersecurity data breaches

In recent months, SABS has faced growing scrutiny. Allegations of maladministration and mismanagement have led to a comprehensive investigation by the Department of Trade, Industry and Competition (DTIC).

The situation worsened with a series of cybersecurity breaches, raising doubts about the SABS’s ability to fulfill its mandate to uphold national standards.

Repeated cybersecurity data breaches

The latest cybersecurity incident occurred in November 2024, marking the third such breach within a year. Previous breaches occurred in 2023 and April 2024. This recent ransomware attack severely disrupted operations, including certification processes and employee salary payments.

Despite spending R140 million on cybersecurity enhancements, including R9.5 million for IT security, SABS still failed to protect its systems. This failure has prompted calls for the DTIC to expand its investigation to include an independent audit of SABS’s cybersecurity framework and expenditures.

Compliance with data protection laws

The repeated breaches raise concerns about SABS’s compliance with the Protection of Personal Information Act 4 of 2013 (POPIA).

POPIA mandates that the SABS implement measures to protect personal information from loss, damage, unauthorised access, or processing. The recurring breaches suggest possible deficiencies in these safeguards, questioning whether SABS is meeting its obligations under the law.

Data breach notification

Another key issue is SABS’s adherence to POPIA’s breach notification requirements. POPIA mandates that the SABS notify both the Information Regulator and affected individuals when personal data is compromised. These notifications must detail the breach’s impact, measures taken to address it, and steps individuals can take to protect themselves.

Failure to notify as required undermines trust and raises legal concerns, particularly if SABS has not informed clients about data losses.

SABS cybersecurity data breaches and implications

The Dis-Chem Pharmacies Limited case serves as a precedent. Dis-Chem faced an Enforcement Notice for non-compliance with POPIA, which included mandates for conducting Personal Information Impact Assessments and implementing Incident Response Plans.

SABS may face similar actions if it fails to meet its obligations under sections 19 and 22 of POPIA, which require security safeguards and breach notifications.

In conclusion

The SABS cybersecurity breaches challenges both its operational integrity and its credibility in maintaining standards. The DTIC’s ongoing investigation and the potential for regulatory actions highlight the importance of upholding stringent standards, particularly in cybersecurity and data protection.

The outcome of these inquiries will be crucial not only for SABS but for all institutions tasked with safeguarding public and personal data in South Africa.


Ahmore Burger-Smidt | Head | Regulatory | Werksmans Attorneys | mail me |



Related FAQs: Cybersecurity data breaches

Q: What constitutes a security breach in the context of cybersecurity?

A: A security breach occurs when an unauthorised individual gains access to confidential information or systems. This can involve various methods, including hacking, malware attacks or social engineering tactics.

Q: How can organisations prevent cyberattacks like those experienced in the SABS cybersecurity data breaches?

A: Organisations can implement robust security measures such as firewalls, intrusion detection systems and regular security audits. Training staff on recognising phishing attacks and employing advanced encryption can also help protect against data theft.

Q: What are the implications of a ransomware attack for a company’s data?

A: A ransomware attack can lead to significant data theft, as hackers may encrypt sensitive data and demand payment for its release. This can disrupt operations, damage reputation and lead to legal ramifications under regulations like the General Data Protection Regulations.

Q: What types of social engineering attacks should companies be aware of?

A: Companies should be aware of various types of social engineering attacks, including phishing attacks, pretexting and baiting. These tactics exploit human psychology to manipulate individuals into revealing sensitive information or granting access.

Q: How can a data leak affect customer trust and company reputation?

A: A data leak can severely impact customer trust as it reveals vulnerabilities in the company’s ability to protect sensitive information. This can lead to loss of business, negative media coverage and a decline in customer loyalty.

Q: What role do cybersecurity firms play in mitigating risks associated with cyberattacks?

A: Cybersecurity firms provide essential services such as threat assessment, data protection strategies, incident response planning and ongoing monitoring to help organisations mitigate risks associated with cyberattacks and breaches.

Q: How can organisations respond effectively to a security incident?

A: Organisations should have an incident response plan in place that includes steps to contain the breach, assess the damage, notify affected parties and report the incident to relevant authorities. Regular drills can improve response times and effectiveness.

Q: Can using a VPN help in preventing data theft?

A: A VPN or Virtual Private Network, encrypts internet traffic, making it more difficult for hackers to intercept data. This added layer of security can help protect sensitive information from being stolen during online transactions or communications.



 



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