Africa is losing billions of dollars annually to cyber crime – funds that could otherwise be invested in infrastructure and skills development says Kerissa Varma, chief security advisor at Microsoft Africa. She warns that the continent faces a growing challenge in defending against an increasingly sophisticated threat landscape.
Varma refers to Interpol research, including reference to Checkpoint data, which states that in 2023 there was a 23% year-on-year increase in the average number of weekly cyber attacks per organisation in Africa.
Varma adds that according to an article published by Darkreading.com, cyber crime is increasing in both volume and sophistication.
Darkreading’s article quotes Heinrich Bohlmann, associate professor in the Department of Economics at the University of Pretoria, as saying that cyber crime has cost the South African economy approximately R2.2 billion per year.
Every corporate action – from acquisitions to technology investments – has a cyber security impact.
Kerissa Varma
The article claims that estimates of the cost of cyber crime in Africa typically vary between $4 billion and $10 billion per year.
Varma says, “There’s a massive loss that’s happening in Africa and you can imagine, you think about say $8bn leaving the continent, if you had to plough that back into infrastructure development, or skilling … there’s a huge loss potential that we are seeing on the African continent. There’s a lot more work that still needs to be done.”.
“We released data about a threat actor called Lumma Stealer recently, and you could see activity across Africa, and the concentration was very high in South Africa.
At the annual ITWeb Security Summit 2025 hosted at the Cape Town International Convention Centre recently, Martin Koyabe, senior manager and technical lead at the Global Forum of Cyber Expertise (GFCE) Africa, said nearly 90% of organisations across the continent experienced a cyber security breach in the past year – many of which can be partly attributed to a shortage of skilled professionals.
“Cyber security threats evolve rapidly, and without a well-trained workforce, organisations are exposed,” Koyabe said. “It’s not just about developing skills, but about building trust and providing continuous upskilling opportunities.”
AI-driven attacks accelerate
Microsoft’s latest Cyber Signals report highlights how cyber criminals are leveraging AI to scale fraudulent operations. The report outlines how AI is being used in e-commerce scams, job and employment fraud, and tech support cons, and offers practical strategies for businesses and individuals to protect themselves.
“South Africa is a major target due to the number of online businesses operating in the country,” Varma notes. “We’re blocking 1.6 million bot signup attempts every hour - these are bot armies trying to create accounts to perpetrate fraud.”
Varma warns that attackers are increasingly using AI to accelerate the pace and precision of cyber attacks.
Take phishing, for example. “Previously, an attacker had to do manual reconnaissance to craft a convincing phishing email. AI can now scour the internet for information about a target in seconds, drastically reducing the time required to launch an attack. As a result, we’re likely to see a significant increase in phishing attempts,” she says.
While ransomware attacks have declined over the past year, Varma predicts a resurgence as criminals use AI to scale and speed up their efforts.
“It’s not just about stealing data anymore -it’s about using AI to sift through massive data sets and pinpoint the single email, file, or document that contains sensitive information that can be exploited for ransom.”
Faster monetisation and the rise of deepfakes
Microsoft Africa is also observing a trend: attackers are monetising breaches more quickly. One emerging threat is the use of deepfakes – AI-generated video and audio – to impersonate trusted individuals and deceive victims into handing over money or credentials.
“It’s becoming increasingly difficult for people to distinguish real from fake,” Varma warns. “But there are tools and mechanisms available to detect these threats.”
She also notes that South Africa is at a pivotal moment as more citizens gain access to smartphones and begin engaging in digital transactions - making education and awareness crucial.
Cyber security must be embedded in business decisions
We can’t rely on manual processes to counter automated, AI-driven attacks.
Varma stresses that cyber security can no longer be treated as an isolated IT issue. “Every corporate action – from acquisitions to technology investments – has a cyber security impact,” she says.
Using acquisitions as an example, Varma explains: “If you acquire a company with poor cyber security practices and integrate them into your infrastructure, you’re inheriting their risk.”
She urges South African businesses to scrutinise the cyber implications of every strategic decision.
As attackers become faster and more sophisticated, Varma believes defenders must also adopt AI tools to keep pace.
“We can’t rely on manual processes to counter automated, AI-driven attacks. The speed of these threats is simply too great,” she says.
While many executive boards now recognise the need to embed cyber security into their digital strategies, many are still unsure how to proceed. Part of the challenge, Varma notes, is that cyber security professionals struggle to articulate the business case – specifically the return on investment.
“Executives need to understand that cyber risk is not static. New threats emerge daily, and that means cyber security must continuously evolve. This is not something you fix once and forget. It requires ongoing investment.”
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