Data has become an increasingly lucrative commodity to cyber criminals and businesses worldwide face a growing prevalence of cyber threats fueled by artificial intelligence (AI) and deepfake technology. Costs following incidents of such a nature can be very high. According to the IBM 2024 Cost of Data Breach report, data breaches in SA now cost R53.10 million per incident, on average. This figure is up from R49.45 million in 2023.

Yonela Ntshobane, Financial Lines and Cyber Underwriter at SHA Risk Specialists, explores the most prominent cyber risks for 2025 and offers insights into proactive strategies to mitigate these threats: “While businesses navigate regulatory and operational challenges, they must prepare for increasingly automated and deceptive cyberattacks.”

The biggest emerging cybercrime trends in 2024

According to the IBM Cost of Data Breach Report, in South Africa, stolen or compromised credentials was the most prevalent initial attack vector, representing 17% of breaches. This was followed by Phishing at 12% of cases and business e-mail compromise was at 10% of breaches studied. Ntshobane identifies three threats that were particularly concerning within the corporate landscape in 2024:

1.     Business email compromise (BEC)

Business Email Compromise has become increasingly and continues to remain on the radar as a predicted major loss driver for 2025. “Through sophisticated social engineering methods, the use of AI, deepfake technologies and honest human error, threat actors have been highly successful in gaining access to corporate networks using business email compromise tactics such as phishing to bait clients,” says Ntshobane.

2.     Supply chain attacks

These attacks have increased in frequency particularly in organisations lacking proper network segregation. “If a threat actor gains access via an exposure point in one division, they will be able to gain access to the entire organisation’s network,” explains Ntshobane

Gartner estimates that by 2025, 45% of organizations worldwide will have experienced attacks on their software supply chains which represents a three-fold increase from 2021. Due to the risk that these types of attacks pose and the fact that cyber criminals are becoming increasingly sophisticated in orchestrating these attacks, Gartner reports that 44% of organizations will substantially increase year-over-year spend on supply chain cybersecurity.

3.     Data Breaches

High profile incidents involving companies like MOVEit, MGM, and T-Mobile exposed records belonging to hundreds of millions of individuals, triggering lawsuits and significant financial settlements.  In South Africa the average cost of a data breach incident rose to R53.10 million up from R49.45 million in 2023.

The report further highlights that 49% of breaches involved data stored across multiple environments, including public cloud, private cloud and on-premises. Breaches of this nature were reported to be the costliest at R59 million on average and took approximately 263 days to identify and contain. 

What businesses can learn from these trends

Cyber security needs to be a proactive, organisation-wide priority. Training and awareness must become central to risk management, with many companies investing in phishing simulations, social engineering education, and other preventative measures. These initiatives address the root cause of 95% of all data breaches: human error.

Additionally, consulting with experts in cyber security, legal frameworks and risk management will prove invaluable. “Business should ensure that they are taking the initiative to implement proper governance and security standards across all environments as the cost of the cyber breach and post incident ramifications far outweighs the costs of implementing the appropriate risk management measures upfront,” says Ntshobane

The most prominent cyber risks and preparation strategies for 2025

Looking ahead, we anticipate that the following risks will be on the rise:

1.     Increased data breaches

The widespread adoption of AI will empower cyber criminals to launch more sophisticated, automated attacks. Businesses must prioritise governance and security standards across all environments, including cloud platforms.

2.     Deepfake technology 

Deepfake technology which is technology used by criminals to manipulate media (photos and videos) which makes it very difficult to establish what is real and what is curated by the cybercriminal.   Companies will need to invest in tools, training and resources to help employees distinguish real information versus false information.

To prepare for these risks, businesses are encouraged to adopt a proactive approach and prioritise cyber security and risk management within their organisations. Some of the key areas and security measures a business should pay importance to are:

·       Awareness training

·       Password management

·       Malware protection

·       Back ups

·       Security patching

·       Restrictions to the use and installation of unsupported software

·       Firewalls

·       Due diligence performed when onboarding supplier or vendors

How the insurance industry is adapting

The insurance industry is embracing technology to enhance data analysis, risk assessment and to automate underwriting processes. “Our role extends beyond offering cyber insurance; we strive to educate the market about cyber security and its associated risks,” says Ntshobane. Insurers are investing in keeping pace with emerging threats and providing tailored risk transfer solutions to clients.

“Cyber is a highly specialised field which makes it very important to collaborate with the experts in cyber security, law firms, insurers and consultants to ensure that informed decisions

and investment are being made for your business in this area. We encourage businesses to find the right partners to advise them appropriately. concludes Ntshobane.

The business landscape has faced unprecedented challenges, specifically intensifying in the past five years with the rapid rise of hybrid working, artificial intelligence (AI), and the integration of innovative tools like virtual reality (VR). These transformative forces fundamentally reshape how companies operate, pushing them to adapt to new technologies while balancing elements like productivity, employee engagement, and ever-evolving customer expectations.

Anne-Marié Pretorius, Director at Bizmod, says that as South African businesses navigate this complex and somewhat overwhelming environment, they are confronted with both the opportunities and the challenges of a rapidly changing digital world. “The pressure is on to not only conform to new ways of working but also innovate and develop strategies taking advantage of burgeoning technologies,” says Pretorius.

She outlines four key challenges that South African businesses are navigating:

Remote and hybrid working

As more large organisations, including Nedbank and Arena Holdings, in South Africa mandate a return to the office, tensions are rising between employees and employers. Providing a hybrid work environment not only enhances employee retention but can also serve as a powerful recruitment tool for attracting top talent.

On the flip side, employers have struggled in recent years to cultivate a strong culture and promote collaboration among employees when they are not working together in person.

The rise of generative AI

In South Africa, the use of generative AI has significantly increased, reflecting a broader global trend driven by technological advancements and the growing accessibility of AI tools. Pretorius says that while AI cannot replicate the deep knowledge and understanding that experienced workers bring to a business, overlooking the opportunities that AI might offer businesses could be short-sighted.

She cautions that while AI relies on historical data, which may not always reflect current business realities, there are significant risks associated with its use. AI-generated insights can sometimes be inaccurate, misleading, or unethical, potentially leading to poor or harmful decisions if not carefully managed by skilled professionals.

The constant cybersecurity threat

In the latest CSIR survey, 47% of organisations reported encountering one to five cybersecurity incidents over the past year, highlighting the increasing threat of cyber-attacks that businesses of all sizes face. To safeguard their valuable data and systems against these evolving threats, especially AI-driven phishing and social engineering attacks – companies must invest in robust cybersecurity measures. As these cyber threats continue to rise, so does the demand for skilled cybersecurity professionals capable of defending against increasingly sophisticated attacks. The survey also revealed a significant skills gap, with 63% of cybersecurity positions remaining partially or fully unfilled.

Skills shortages

The shortage of IT skills is growing, and organisations are needing to find new ways to recruit, train, retain, and upskill employees. The IDC (International Data Corporation) predicts that by 2026, more than 90% of organisations worldwide will experience a shortage of IT skills, amounting to some $5.5 trillion in losses caused by product delays, impaired competitiveness, and loss of business.

The rapid emergence of new technologies and tools is resulting in a gap between employee skills and technologies, as individuals struggle to keep up.  In addition, STEM curriculums need to be timeously updated to allow for the changing technologies, the skills gap will continue to widen.

“It’s more than evident that businesses that achieve the fine balance of effectively managing a hybrid workforce and embrace the opportunities that digital transformation can bring will be better equipped for future growth and prosperity,” says Pretorius ends.

For more information visit Bizmod’s website

While artificial intelligence and digital technologies have come to dominate conversations on what the future job market might look like, the latest predictions from the World Economic Forum (WEF) indicates the need to focus on ‘soft skills’ in equal measure.

In its Future of Jobs report, the WEF highlights the growing importance of skills such as analytical thinking, resilience and emotional intelligence. These competencies are particularly relevant in the South African context, with over 45% of young people between the ages of 15 and 24 not engaged in formal employment, education or training according to Statistics South Africa.

Additionally, the rise of automation and digital transformation across industries has intensified the demand for workers who can not only operate advanced technologies but also navigate uncertainty with creativity and problem-solving skills. Employers increasingly prioritise emotional intelligence, teamwork and adaptability – qualities that are essential for thriving in diverse and fast-evolving work environments.

Holistic learning

Holistic learning provides a foundation for developing these critical soft skills and emphasises the development of the whole child, including their emotional, social and cognitive abilities. This is the approach adopted by Rays of Hope, a community-driven NGO, which, says its CEO, Muziwethu Zwane, is the key to empowering children to thrive in the dynamic future world of work.

“The future of work is not just about technical expertise. It’s about equipping individuals with the ability to adapt to change, which is inevitable as we know, to solve complex human-centric problems that computers simply can’t, and to collaborate effectively,” says Mr Zwane. “Rays of Hope take this holistic approach to education by ensuring that the child is not only academically competent in maths or English but is also supported in developing other crucial life skills that will help them thrive in the future.”

Rays of Hope’s Whole Child Model takes a holistic approach to education, focusing on physical, emotional, nutritional and cognitive development, fostering a culture of well-being. “At ECD level, for instance, children engage in interactive play and are exposed to other targeted interventions that aim to foster creativity, critical thinking and social interaction from an early age,” says Dikeledi Phiri.

Building skills for the future workforce
The growing emphasis on soft skills is reshaping how educational institutions and policymakers approach curriculum development. While technical skills remain important, preparing learners for a future defined by rapid change requires a balanced approach that equips them with human-centric capabilities.

The global shift toward hybrid and remote work environments further highlights the importance of communication and adaptability. Employers increasingly seek workers who can manage virtual collaborations, navigate cultural diversity and maintain productivity in flexible work settings.

“South Africa’s challenges, while significant, present an opportunity to reimagine education in a way that equips learners for a rapidly evolving job market, and by fostering soft skills alongside academic knowledge, the country can empower its youth to thrive as resilient and innovative leaders in a world where human potential remains the greatest asset,” concludes Mr Zwane.

Small businesses in South Africa often find themselves overwhelmed by the complex and ever-changing world of tax and payroll. Getting it wrong can lead to hefty fines and legal trouble, so to avoid these headaches, many SMEs are turning to Temporary Employment Services (TES) providers. These experts can handle the nitty-gritty of payroll, ensuring everything from tax calculations to employee benefits is done correctly and on time.

Payroll turns the wheels of every industry
Payroll is the engine that drives businesses, ensuring smooth operations and employee satisfaction. Accurate wage calculations, timely payments, and strict adherence to labour laws are essential components of a well-managed payroll system.

Accurate payroll calculations are essential for maintaining accurate financial records, making informed decisions, and ensuring tax compliance. A robust payroll system not only guarantees compliance with South Africa’s complex labour laws but also fosters a positive work environment. By ensuring timely and correct salary payments, businesses demonstrate respect for their employees, boosting morale and productivity.

Importantly, a strong payroll system safeguards sensitive employee information, such as personal details and financial records, keeping it safe from digital harm. By prioritising payroll, SMEs can create a positive work environment, attract, and retain top talent, and achieve long-term success.

The power of outsourcing payroll
However, without dedicated in-house payroll expertise, payroll accuracy is not guaranteed. This is because SMEs can find it difficult to interpret and apply nuanced tax and payroll rules accurately which can potentially lead to errors and attract penalties for non-compliance.

Here, TES providers offer a solution that gives SMEs expert guidance and support, at a fraction of the cost of handling payroll internally. By outsourcing the payroll function to a dependable TES provider, the SME will benefit from accurate wage, tax and benefits calculations, timely submissions, along with the reporting functionality to ensure compliance with all applicable labour laws.

In handing responsibility for these tasks over to a TES provider, SMEs can make the strategic move to free up valuable time and resources to focus on their core business activities, reducing risks and improving operational efficiency.

The importance of SARS approval
A critical aspect of payroll compliance is obtaining approval from the South African Revenue Service (SARS) for payroll systems. TES providers, with their expertise and experience, ensure that their systems are SARS-approved, reducing the risk of errors and potential penalties. By accurately calculating and remitting taxes like PAYE, UIF, SDL, and WCA, TES providers help SMEs stay on the right side of the law.

Customised payroll solutions for a competitive edge
One of the most significant benefits of partnering with a TES provider is the ability to implement customised payroll solutions. By tailoring compensation packages to meet the unique needs of each employee, SMEs can attract and retain top talent.

TES providers can also assist in designing flexible compensation packages that include performance-based bonuses, commission structures, and other incentives. Additionally, they can efficiently manage retirement fund contributions, ensuring compliance with regulatory requirements. By outsourcing the processing of payments to third-party providers, such as medical aid funds and pension funds, SMEs can significantly reduce administrative burdens.

With a TES partner, businesses can focus on their core operations while ensuring that their payroll processes are efficient, compliant, and competitive.

Growth by the power of partnership
By partnering with a reliable TES provider, SMEs can streamline their payroll processes, ensure compliance with tax regulations, and create a more attractive workplace for their employees. Such a strategic partnership can empower SMEs to focus on growth and innovation, while leaving the complexities of overseeing a growing payroll to the experts.