R175 Million Grant Fraud Exposed at SASSA as Threats Continue
More than 26 million South Africans rely on some form of social grant to cover their basic expenses, and with the recent increases in the cost of living, this financial lifeline from the state has become a matter of survival for many families.
Unfortunately, cybercriminals may be planning to target the South African Social Security Agency (SASSA), which has recently been shown to have significant cybersecurity vulnerabilities.
In this article, we take a look at the recent R175 million cyber fraud incident reported by the agency, in light of media reports suggesting its online application system may be an open invitation for fraudsters.
Here’s what every citizen needs to know with yet another government department buckling under the pressure of the country’s growing cybercrime wave.
R175 Million Stolen in Grant Fraud
The NaughtySecGroup has reared its ugly head again, claiming responsibility for stealing R175 million from social security grants by allegedly opening a staggering 100 000 fraudulent bank accounts across the country.
The hacking group, which made headlines last year by nearly stealing TransUnion’s entire data set for South African clients, says the recent move was in retaliation for not receiving the $60 million (close to R1 billion) ransom they demanded.
If the hackers are to be believed, the safety of South Africans’ financial information and the security protocols used by banks for account opening procedures are now in question. SASSA has revealed very little information in the wake of these claims, failing to reassure the public that the situation is under control.
Researchers Spotlight SASSA’s Cybersecurity Vulnerabilities
As the social welfare agency reels from its recent brush with fraudsters, a recent article reveals that the agency may be extremely vulnerable to follow-up attacks by cybercriminals.
Two students from Stellenbosch University conducted independent research into the agency’s vulnerability status by using a random sample of ID numbers to test the agency’s online application security. The results are alarming, to say the least.
- When testing the system with ID numbers issued to people born in 2005 – representing a relatively young cohort of citizens – the researchers found that 91% percent of these numbers were associated with grant applications.
- Given the young age and presumed good health of the applicants, it seems highly implausible that they would all be genuine grant applicants.
- The researchers also applied for grants through the system at a rate of 700 per minute, an action that should have triggered a security alert and prevented further applications. However, the application process continued without interruption.
In conjunction with the claim of the R175 million fraud, these findings cast serious doubt on the security protocols in place at government departments, as well as in the financial sector.
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