Business Day

Tardiness with fixing IT breaches earns department a R5m fine

- Katharine Child Retail Correspond­ent

The department of justice & constituti­onal developmen­t’s failure to buy antivirus software, as ordered by the informatio­n regulator, has earned it a R5m fine — the highest penalty yet imposed for noncomplia­nce with the Protection of Personal Informatio­n Act (Popia).

The department suffered a cyberattac­k in 2021 that resulted in the loss of more than 1,200 files, with encryption of internal documents and personal informatio­n being compromise­d. It forced the court recording systems offline, which led to postponeme­nts at lower courts.

It emerged that the department had not renewed its antivirus software, including its intrusion detection licence that would have flagged suspicious activity by unauthoris­ed people accessing the network. In response, the informatio­n regulator issued an enforcemen­t order in May obliging the department to show it had taken remedial action.

The widely publicised order required the department to show proof it had renewed its antivirus and intrusion detection licences within 31 days.

The regulator’s May enforcemen­t order also required the department to show it had instituted disciplina­ry action against the employees who had failed to renew antivirus software, saying this was “necessary to safeguard the department against security compromise­s”.

The department had two alternativ­es when it received the order in May: either purchase antivirus software and start disciplina­ry action, or appeal against the order.

The regulator imposed the fine on Monday after the department failed to do either. This was despite a warning by the regulator that noncomplia­nce with the enforcemen­t order could lead to an administra­tive fine of up to R10m, or the imprisonme­nt of the responsibl­e officials.

The breach in 2021, which happened a year after the antivirus software expired, resulted in staff being unable to access their emails and issue electronic letters to the public, including bail documents.

It also meant the regulator’s website, which relied on the department’s IT system, went down and its staff was unable to access emails for three days.

At the time, the regulator reminded the department it was required under Popia to inform the regulator of cyberattac­ks. Instead, the regulator had learnt of it through its own system failing and media reports.

In 2022, justice & correction­al services minister Ronald Lamola told parliament the cyberattac­k had been “debilitati­ng” and pledged the department would improve its systems.

“We have gained good experience and we have learnt lessons on avoiding a similar incident, and we are continuous­ly implementi­ng backup and the necessaril­y security systems,” he said.

But the 2021 breach was followed by another one in 2023 in which hackers stole R18m from the Guardian Fund. The fund, which falls under the master of the high court, was created to manage money on behalf of those legally incapable of managing their affairs, such as minors or missing people.

On Monday, the regulator said the department has 30 days to pay the fine, make arrangemen­ts to pay it in instalment­s, or elect to be tried in court on a charge of having committed the alleged offence.

The informatio­n regulator is an independen­t body that was establishe­d in 2016 and launched in 2021, and is answerable to parliament.

Security breaches and hacks are very common and affect large businesses often with some having to pay the hackers to restore services. However, the fine by the informatio­n regulator is not for the breaches of the department but the inaction.

Pharmacy chain Clicks suffered an IT security breach in May, which allowed hackers to acquire some customers’ personal details.

The SA division of credit bureau Trans Union was hacked in 2022 and a large amount of personal informatio­n stolen.

The department of justice & constituti­onal developmen­t was not immediatel­y available for comment.

THE DEPARTMENT HAD NOT RENEWED ITS ANTIVIRUS SOFTWARE, INCLUDING ITS INTRUSION DETECTION LICENCE

THE FINE BY THE INFORMATIO­N REGULATOR IS NOT FOR THE BREACHES OF THE [IT SYSTEM] BUT THE INACTION AFTER IT

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