Exploring the Prevalence of Cybercrime in the Banking Industry in KwaZulu-Natal, South Africa

Abstract

As expenditures in broadband infrastructure in developing countries have increased and barriers to internet access have decreased, this infrastructure has rapidly become a target for cybercrime. Developing countries such as South Africa, Kenya, and India have become the preferred destination for cybercriminals. As banks now rely on digital networks for their business operations, the risk of becoming a cybercrime victim has increased for both the banking industry and its clients. The paper analyses the causes of the increased rate of cybercrime in banks and determines the effectiveness of legislation in addressing the threat posed by cybercrime to the banking industry. This study utilised a qualitative research design using face-to-face interviews with ten participants who were purposively selected. The study revealed the prevalence of internal fraud within the banking industry, poor internal controls, ineffective processes and systems, banking clients’ lack of knowledge and awareness of the looming threat of cybercrime, low conviction rates for cybercriminals; and SAPS officials’ lack of skills in policing cybercrime in KwaZulu- Natal as some of the key factors that exacerbate cybercriminal activities in the banking industry. Based on the transnational character of cybercrime, it had been concluded that the majority of the banks in South Africa and many other countries are under threat of cybercrime, and therefore they need to coordinate and implement a unified effort to tackle the growing threat of cybercriminal activities in the banking industry.