January 26, 2023

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The Smart Business

Postbank loses over R18m to cybercrime attacks

  • The Postbank states it missing about R18 million around 3 months in cybercrime assaults.
  • Most incidents associated the accounts for social grant beneficiaries.
  • A forensic audit was released and the Hawks are investigating.
  • Postbank suggests it will invest R400 million to upgrade its IT systems to counter comparable assaults.

The South African Postbank is to commit R400 million above the future three decades to up grade and modernise its IT techniques.

This follows the state-owned entity shedding a lot more than R18 million around a 3-month period of time to cybercrime assaults.

On Tuesday, Postbank CEO Lucas Ndala instructed Parliament’s portfolio committee on communications that it had “a range of cyber fraud incidents – most of them relating to the Sassa beneficiary grant payment system”.

Ndala claimed the Postbank IT technique experienced been flagged by the Auditor Standard for possessing “control weaknesses”.

“There has been a concerted effort and hard work to address these method deficiencies given that the grant program was ceded to Postbank in 2021. A great deal of these weaknesses occur from the program alone due to the fact it came with a quantity of flaws that needed to be tackled over time,” Ndala stated.

In reaction to DA MP Dianne Kohler Barnard on the whole charge of the IT update, Ndala reported, “The overall expense authorized is just about R400 million. This will be funded from Postbank means. The modernisation will be more than a three-calendar year period.”

He claimed the accounts of 141 grant beneficiaries had been strike in a cyber assault in August. The point out-owned entity dropped R5.8 million in this incident.

The next incident occurred in September, also involving accounts getting social grants on behalf of kids. Ndala said the Postbank’s Fraud Hazard Crew found that some of these accounts were fraudulent, and, as a preventative evaluate, these have been blocked.

Nevertheless, “the blocking was not finished correctly,” said Ndala. “Anyone could unblock them inside our branch community,” he explained. Postbank dropped about R4 million in this incident.

In October 2022, Ndala mentioned the Postbank banking technique suffered another cybercrime attack and lost about R9 million.

Earlier this year it was disclosed that the Postbank had suffered a decline of at the very least R90 million in cybercrime assaults in Oct 2021.

Ndala advised MPs that Postbank is on the very same IT community as the South African Publish Place of work (SAPO). A person of the needs when Postbank utilized for a banking licence from the SA Reserve Financial institution, was that it necessary its very own “stand-by yourself IT ecosystem that can’t be impacted by the hazards from SAPO”.

Ndala stated the report on a forensic audit into the the latest cybercrime incidents is expected to be released in December, though the next aspect of the report is predicted in February 2023.

Nonkqubela Jordan-Dyani, acting Director-Normal in the Department of Communications and Digital Technological innovation, said: “There demands to be consequence administration for the reason that these are public resources and resources that belong to Postbank. We require to make positive that all those liable are held accountable.”

“The Hawks will guideline us in their procedure, and from our facet, we are intending that the report will be tabled to the Cabinet,” claimed Jordan-Dyani.

Postbank did not answer to queries on regardless of whether payments to social grant beneficiaries had been affected or how it experienced lined the losses.