R350-million security warning to South Africa

Some of the most damaging data breaches in the last three years have cost South African organisations up to $20 million (R361.29 million). Yet, many do not plan to substantially increase their cyber budgets.

This was revealed in PwC’s Global Digital Trust Insights Survey 2025, the longest-running and largest of its kind.

The report found that, despite the significant threat data branches pose to companies, only 29% of South African organisations expect to increase their cyber budget by 6% to 10% by 2025.

“As cyber threats evolve, we are seeing South African organisations increasingly prioritise cybersecurity defences in order to safeguard their digital infrastructure and maintain trust in an interconnected world,” said PwC Africa Cybersecurity Leader Hamil Bhoora. 

“This couldn’t be more pertinent considering the rate at which cyber breaches are occurring on the African continent, and the subsequent financial impacts which have a severe knock-on effect on business continuity operations and companies’ wider stakeholders.”

In 2024 alone, several large South African companies have fallen victim to cyber-attacks and data breaches.

In March this year, Nampak announced that it had detected unauthorised activity on its IT systems.

According to the company, an unknown third party gained access to its IT systems despite its “robust and embedded security protocols.” 

A few months later, in July, mining giant Sibanye-Stillwater was hit with a cyber-attack involving all of its global IT systems.

More recently, in November, Standard Bank confirmed that it experienced a data breach that involved the personal and financial information of a limited number of clients in South Africa.

This came after News24 received a tip-off that a Standard Bank employee who had authorised access to specific client data copied some of this data to an unprotected personal device.

In the same month, Telkom announced it had taken legal action against a third-party company and a franchisee employee for allegedly fraudulently poaching the telecom giant’s customers. 

Telkom said it became aware of the fraud after a whistleblower alerted the company to fraudulent targeted customer poaching.

The implicated franchisee employee is alleged to have leaked Telkom customer data, which he had access to during the course of his job, to the third-party company, thereby enabling unlawful activities.

PwC’s survey recorded the sentiments of 4,042 senior business executives worldwide, including 94 organisations from South Africa. 

Bhoora said the survey’s findings underscore the pressing need for enhanced cybersecurity measures as organisations navigate an increasingly complex security threat landscape.

One of the primary concerns for business leaders today is mitigating cyber risks, with 47% of South African organisations expressing significant concern about cloud-related threats over the next 12 months.

“Business leaders’ heightened focus on cybersecurity risks reflects a growing recognition of the importance of protecting against cyberattacks and ensuring the resilience of their operations,” said PwC South Africa Forensics Technology Partner Junaid Amra.

Business leaders said another significant concern is the threat posed by hack-and-leak operations. 

“These incidents, where sensitive information is stolen and publicly disclosed, pose a severe risk to the reputation and operational integrity of organisations,” Amra explained. 

“The survey indicates that African organisations are particularly vigilant about these threats, emphasising the need for robust data protection measures and incident response strategies.”

The survey further found that data breaches also remain a critical issu,e with many organisations reporting significant impacts from such incidents. 

“The financial and reputational damage caused by data breaches underscores the necessity for comprehensive security protocols and continuous monitoring to detect and respond to breaches promptly,” said PwC South Africa Cybersecurity Partner Johan Pretorius. 

“While some organisations have managed to avoid being breached, our survey findings indicate that this remains an ever-present threat, necessitating ongoing vigilance and investment in cybersecurity.”

This article was first published by Daily Investor and is reproduced with permission.