Cyber Security Awareness Month: Addressing risks in SA's residential property sector

Cape Town - October marks Cyber Security Awareness month, a global campaign that shines a light on 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 – said that today’s landscape is more complex than ever before.

“Today there are billions of users, applications and devices all sharing and accessing data, and this figure continues grow year-on-year.”

Smith believes that there is still a lot of 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 1450 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 that we simply cannot afford.”

According to the 2024 Cisco Cybersecurity Readiness Index, the majority of 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,” said Smith.

In addition, a sharp rise in Artificial Intelligence (AI) in recent years is only adding 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.

And while the reports focus on retirees, there most certainly is room for further targeting as it gains more ground,” said Smith, highlighting findings in KPMG’s 2023 CEO Outlook Survey which reported that 84% of local CEOs are concerned about the risks associated of AI.

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 said.

“Also important to remember is that many of the country’s estate agencies and conveyancing attorneys are SMEs who unfortunately lack the cyber infrastructure 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 taking place in the property sector.

“A phishing crime took place where fraudsters intercepted an e-mail trail and reminded a homebuyer to pay a deposit over to the incorrect bank account.”

In another prime example, a prominent KwaZulu-Natal-based attorney has been 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,” said 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.”

Smith said despite the slow uptake, 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 better understand (and deploy) it’s 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 the investment of their deposit.

It issues a free bank guarantee and protects buyers from having to transfer the funds to a third party who may not have adequate cybersecurity measures in place.

The secure platform gives the homebuyer full transparency of their deposit investment as opposed to their money sitting with the seller’s attorney.

“Among several other reasons, we quite literally created this solution to address the cybersecurity risks that exist today,” said 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 that you tick all the boxes. If something doesn’t feel right, then 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 said.

Weekend Argus