Jackie Smith
Head of Buyers Trust
October is Cyber Security Awareness Month, a global campaign that emphasizes the importance of safeguarding against cyber threats.
With so many cyber vulnerabilities present across all industries, Jackie Smith, Head of Buyers Trust—a cutting-edge bank-hosted deposit solution for homebuyers—comments that today’s landscape is more complex than ever.
“Today there are billions of users, applications and devices all sharing and accessing data, and this figure continues to grow year-on-year.”
Data shows that SA is more vulnerable than ever before
Smith believes there is still much work to be done, with South Africa ranked 14th on the World Cybercrime Index among the countries posing the greatest cybercrime threat.
“The position suggests that despite some progress, South Africa remains a notable source of cybercrime, necessitating further work in enforcement, awareness and cybersecurity infrastructure.”
In Q2 ’24, Checkpoint highlighted a 37% increase in cyberattacks across Africa, with South Africa experiencing an average of 1,450 weekly attacks per organisation (a 4% year-on-year increase).
“IBM’s latest report also pins the cost of a data breach incident at R53.10 million – a figure we simply cannot afford.”
According to the 2024 Cisco Cybersecurity Readiness Index, most local businesses remain underprepared for cyberattacks. “When it comes to combating cybercrime, only 5% of businesses in South Africa have reached the maturity stage and are, in fact, adequately prepared to fight cybercrime,” says Smith.
In addition, a sharp rise in Artificial Intelligence (AI) in recent years only adds to the acceleration of cybercrime. “Recent information released in South Africa indicate that FraudGPT (an AI tool found on the dark web) could, in fact, pose a threat to some of the most vulnerable members of our society, retirees.
While the reports focus on retirees, there most certainly is room for further targeting as AI gains more ground,” says Smith, highlighting findings in KPMG’s 2023 CEO Outlook Survey, which reported that 84% of local CEOs are concerned about the risks associated with AI.
Will the residential property sector rise to the challenge?
Smith argues that the residential property sector remains increasingly vulnerable to cybercrime. “In a largely traditional industry where a homebuyer will simply transfer a large deposit to a third party like a conveyancer or estate agent, the risks are high,” she says. “Also important to remember is that many of the country’s estate agencies and conveyancing attorneys are SMEs who unfortunately lack the cyberinfrastructure required.”
Smith adds that while there is no data specifically linked to the property sector, a recent attack on a homebuyer who paid over R5.5 million to fraudsters is just another example of the phishing crimes currently occurring in the property sector.
“A phishing crime occurred where fraudsters intercepted an e-mail trail and reminded a homebuyer to pay a deposit over to the incorrect bank account.”
Another prime example is a prominent KwaZulu-Natal-based attorney who was suspended by the Legal Practice Council (LPC) following the misappropriation of funds during a property transaction. “The attorney failed to wind up a deceased estate for more than seven years and ‘transferred’ R5 million from another deceased estate without authority. This case is a prime example of grieving loved ones being taken advantage of by those who are meant to protect them,” says Smith, adding that these are just two high-level examples of fraud currently plaguing the industry and consumers at large.
She adds that a lack of cybercrime insurance in South Africa remains a prevalent issue – particularly among SMEs. “Reports by Santam earlier this year outlined that many SMEs believed that ‘it would never happen to them’, and as a result, some were without cybercrime insurance. Among its many benefits, cybercrime insurance offers peace of mind in a case of a data breach or cybercrime.”
Proptech solutions to boost industry security
Despite the slow uptake, Smith states that proptech remains a catalyst for security and safety in the property industry. “While the term ‘proptech’ is often spoken about, the industry still needs to understand better (and deploy) its many untapped benefits.”
One such game-changing proptech tool is the Buyers Trust platform, a web-based application that gives homebuyers an alternative proposition for investing their deposit.
It issues a free bank guarantee and protects buyers from transferring the funds to a third party that may not have adequate cybersecurity measures in place. The secure platform gives the homebuyer full transparency of their deposit investment instead of having their money sit with the seller’s attorney.
“Among several other reasons, we quite literally created this solution to address today’s cybersecurity risks,” says Smith.
Smith’s advice to consumers is to do your due diligence. “When you are required to pay over a large sum of money, make sure you tick all the boxes. If something feels wrong, don’t be scared to pick up the phone and check.”
Looking ahead, Smith hopes that the year ahead will mark much-needed change in industry.
“The property industry should acknowledge the increasing sophistication of cyber fraud. Lots of money is moved around daily during real estate transactions, and implementing robust cybersecurity measures is essential to prevent these funds from falling into the wrong hands,” she concludes. Smith hopes the year ahead will mark a much-needed change in the industry.