Nclose survey reveals rising ransomware threat to SA businesses

Stephen Osler, Co-Founder and Business Development Director at Nclose.

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A new study conducted by Nclose has shed light on the growing ransomware threat facing South African businesses. According to the Nclose State of Ransomware in South Africa survey, which gathered responses from 500 local organisations, 63.2% of respondents reported experiencing at least one ransomware attack in the past 24 months. Alarmingly, financial losses from these incidents have run into the tens of millions of rands.

Stephen Osler, Co-Founder and Business Development Director at Nclose, notes that the findings come as no surprise. “Many organisations hesitate to disclose attacks, so the true extent of ransomware in South Africa is likely underreported. What we do know is that cyber crime, particularly ransomware, is rising rapidly.”

The financial impact is equally concerning. While 28% of businesses reported no financial losses, Osler finds this figure “unlikely”, considering the costs associated with remediation, downtime and operational disruption. The survey revealed that 14 businesses suffered losses exceeding R10 million each, with 8.6% reporting losses between R1 million and R10 million.

Key vulnerabilities emerged from the study, with exploited software vulnerabilities accounting for 21.2% of attacks, followed by phishing or social engineering incidents (16.2%), and supply chain attacks (12.8%). Osler expressed concern that “software vulnerabilities were higher than expected, since patch management is a fundamental part of cyber security”.

Despite the challenges, the survey points to positive signs of increased resilience. Notably, 70.8% of respondents now express confidence in their ability to prevent future ransomware attacks, with many businesses prioritising cyber security at the highest level. “It’s encouraging to see that boards and top executives are recognising cyber security as a critical business risk,” Osler says.

According to the survey:

• 74.6% of organisations now view cyber security as a top priority.
• 23% allocate over 20% of their IT budget to cyber security.
• Nearly 60% of respondents anticipate an increase in ransomware attacks over the next year.

Osler stresses that while budget increases are important, they must be strategically allocated. “Businesses should adopt a risk-based approach and explore smarter toolsets and partnerships to optimise their cyber security investments.”

As ransomware continues to evolve, Nclose’s survey serves as both a warning and a guide for South African enterprises. “By learning from past experiences and making cyber security a top priority, businesses can build greater resilience in the face of this growing threat,” Osler concludes.