As consumers slow down for the year-end break, cybercriminals are entering their biggest time of the year yet, writes DOROS HADJIZENONOS.
As consumers wind down for a much-needed year-end break, cybercriminals are entering their busiest time of year. A time when consumers are quick to snap up festive season savings and when they use their devices more for entertainment and less for work.
While most people will be reading books or letting their children play games on their devices, some will still access their work emails and documents at the beach. It is therefore crucial that businesses adopt robust, user-friendly security technology that protects users when they’re not in the office.
Ideally, all business-sensitive information should be stored in a capsule on devices that is separate from the user’s personal information. The password-protected capsule should only be accessible by authorised users and should encrypt all information stored within it so that the data remains secure if the device is lost or stolen.
Ignorance is not bliss
Information security cannot only be the responsibility of the IT department, especially when users access private and business information on one device. Not only should users take steps to protect their devices but they should also be aware of the tactics used by cybercriminals to trick people into downloading malicious apps or visiting harmful websites. They should also use common sense when granting apps permission to access information on their devices – a photo editing app does not need access to a phone’s contacts list, for example.
Festive season cybercrime tactics often involve “discounts” when shopping online or through a retailer’s app. What consumers are often unaware of is that, even though the app or URL look legitimate, they are not have been designed with the sole purpose of stealing information.
The fact that users can often bypass app stores and download apps directly from publishers’ websites has made it easier for cybercriminals to trick people. By simply sending an email that appears to come from a trusted retailer, prompting the user to download its app to receive a R200 discount voucher, hackers take advantage of unsuspecting shoppers looking to save money on their festive expenses, simply by directing them to a link that downloads a fake app.
All it takes is one click and the app will have access to a user’s camera, microphone, GPS location, contacts, calendar and anything else the user allows it to, because let’s face it, no one reads the list of permissions when downloading apps; we blindly accept the terms and conditions without a second thought. And hackers know this.
Apps behaving badly
Hackers may create an app that looks legitimate but has malware installed in it.
Consider a traveller who has arrived in a new city and wants to download a local city guide application. These are readily advertised in tourist locations with a QR code. A hacker could stick his own QR code over the poster advertising the application and the unsuspecting tourist would then be directed to the hacker’s application that looks exactly the same as the original city guide application.
Once a user has downloaded what he thinks is an app to help him find interesting city information, he will be oblivious to the fact that a hacker is monitoring his every move. And because he gave the app permission to access many parts of his phone (including photos, camera, microphone, GPS location, etc), it is possible for the hacker to view this information as well as send screen captures of whatever is displayed on the screen, which can put company information at risk even though a secure container may be used to store this information.
Just as we protect our houses with security bars, electric fencing, alarm systems, beams and guard dogs, companies also need a multi-layered security approach, so that if a hacker breaches one system, there’s a good chance he’ll be tripped up by another.
While anti-virus solutions are good at blocking known malware, they are less effective against unknown malware. Hackers can also turn known malware into unknown malware in minutes using freely available online modification tools. Security should therefore be bolstered by sandboxing and other security monitoring tools.
Once an app bypasses the anti-virus system, a sandboxing solution will emulate how the app will perform if a user were to open it and will either alert the user if it is malicious or prevent the user from downloading it.
The next level of control involves monitoring the app for suspicious behaviour once it does execute, for example, if the device’s camera still records even though it is turned off. The software will either alert the user to the suspicious behaviour or quarantine the app for further investigation.
It’s tempting to agree to download an app in exchange for 25% off a shopping cart, but users should exercise caution and investigate not only the link they are being directed to but also the information the app asks to access before installing it. It’s safer to go directly to the retailer’s website and follow the download links, or to download the verified app from an app store, than to blindly trust a link in an email or SMS.
Businesses should assume that consumers are not protecting their devices or following due diligence when downloading apps and should implement multi-layered security systems that make it difficult for malicious apps to enter the network.
Hackers will continue to prey on network vulnerabilities and human error to steal information. As long as we stay one step ahead, we can afford to relax this festive season knowing our information is secure.
* Doros Hadjizenonos, Country Manager of Check Point South Africa
Online retail gets real
After decades of experience in selling online, retailers still seek out the secret of reaching the digital consumer, writes ARTHUR GOLDSTUCK.
It’s been 23 years since the first pizza and the first bunch of flowers was sold online. One would think, after all this time, that retailers would know exactly what works, and exactly how the digital consumer thinks.
Yet, in shopping-mad South Africa, only 4% of adults regularly shop online. One could blame high data costs, low levels of tech-savviness, or lack of trust. However, that doesn’t explain why a population where more than a quarter of people have a debit or credit card and almost 40% of people use the Internet is staying away.
The new Online Retail in South Africa 2019 study, conducted by World Wide Worx with the support of Visa and Platinum Seed, reveals that growth is in fact healthy, but is still coming off a low base. This year, the total sale of retail products online is expected to pass the R14-billion mark, making up 1.4% of total retail.
This figure represents 25% growth over 2017, and comes after the same rate of growth was seen in 2017. At this rate, it is clear that online retail is going mainstream, driven by aggressive marketing, and new shopping channels like mobile shopping.
But it is equally clear that not all retailers are getting it right. According to the study, the unwillingness of business to reinvest revenue in developing their online presence is one of the main barriers to long-term success. Only one in five companies surveyed invested more than 20% of their online turnover back into their online store. Over half invested less than 10% back.
On the surface, the industry looks healthy, as a surprisingly high 71% of online retailers surveyed say they are profitable. But this brings to mind the early days of Amazon.com, in 1996, when founder Jeff Bezos was asked when it would become profitable.
He declared that it would not be profitable for at least another five years. And if it did, he said, it would be in big trouble. He meant that it was so important for long-term sustainability that Amazon reinvest all its revenues in customer systems, that it could not afford to look for short-term profits.
According to the South African study, the single most critical factor in the success of online retail activities is customer service. A vast majority, 98% of respondents, regarded it as important. This positions customer service as the very heart of online retail. For Amazon, investment back into systems that would streamline customer service became the key to the world’s digital wallets.
In South Africa online still make up a small proportion of overall retail, but for the first time we see the promise of a broader range of businesses in terms of category, size, turnover and employee numbers. This is a sign that our local market is beginning to mature.
Clothing and apparel is the fastest growing sector, but is also the sector with the highest turnover of businesses. It illustrates the dangers of a low barrier to entry: the survival rate of online stores in this sector is probably directly opposite to the ease of setting up an online apparel store.
A fast-growing category that was fairly low on the agenda in the past, alcohol, tobacco and vaping, has benefited from the increased online supply of vapes, juices and accessories. It also suggests that smoking bans, and the change in the legal status of marijuana during the survey, may have boosted demand.
In the coming weeks, we can expect online retail to fall under the spotlight as never before. Black Friday, a shopping tradition imported “wholesale” from the United States, is expected to become the biggest online shopping day of the year in South Africa, as it is in the USA.
Initially, it was just a gimmick in South Africa, attempting to cash in on what was a purely American tradition of insane sales on the Friday after Thanksgiving Day, which occurs on the third Thursday of November every year. It is followed by Cyber Monday, making the entire weekend one of major promotions and great bargains.
It has grown every year in South Africa since its first introduction about six years ago, and last year it broke into the mainstream, with numerous high profile retailers embracing it, and many consumers experiencing it for the first time.
It is now positioned as the prime bargain day of the year for consumers, and many wait in anticipation for it, as they do in the USA. Along with Cyber Monday, it provides an excuse for retailers to go all out in their marketing, and for consumers to storm the display shelves or web pages. South African shoppers, clearly, are easily enticed by bargains.
Word of mouth around Black Friday has also grown massively in the past two years, driven by both media and shoppers who have found ridiculous bargains. As news spreads that the most ridiculous of the bargains are to be had online, even those who were reticent of digital shopping will be tempted to convert.
The Online Retail in SA 2019 report has shown over the years that, as people become more experienced in using the Internet, their propensity to shop online increases. This is part of the World Wide Worx model known as the Digital Participation Curve. The key missing factor in the Curve is that most retailers do not know how to convert that propensity into actual online shopping behaviour. Black Friday will be one of the keys to conversion.
Carry on reading to find out about the online retailers of the year.
Reliable satellite Internet?
MzansiSat, a satellite-Internet business, aims to beam Internet connections to places in South Africa which don’t have access to cabled and mobile network infrastructure, writes BRYAN TURNER.
Stellenbosch-based MzansiSat promises to provide cheap wholesale Internet to Internet Service Providers for as little as R25 per Gigabyte. Providers who offer more expensive Internet services could benefit greatly from partnering with MzansiSat, says the company.
“Using MzansiSat, we hope that we can carry over cost-savings benefits to the consumer,” says Victor Stephanopoli, MzansiSat chief operating officer.
The company, which has been spun off from StellSat, has been looking to increase its investor portfolio while it waits for spectrum approval. The additional investment will allow MzansiSat’s satellite to operate in more regions across Africa.
The MzansiSat satellite is being built by Thales Alenia Space, a French company which is also acting as technical partner to MzansiSat. In addition to building the satellite, Thales Alenia Space will also be assisting MzansiSat in coordinating the launch. The company intends to launch the satellite into the 56°E orbital slot in a geostationary orbit, which enables communication almost anywhere in Africa. The launch is expected to happen in 2022.
The satellite will have 76 transponders, 48 of which will be Ku-band and 28 C-band. Ku-band is all about high-speed performance, while C-band deals with weather-resistance. The design intention is for customers of MzansiSat to choose between very cheap, reliable data and very fast, power-efficient data.
C-band is an older technology, which makes bandwidth cheaper and almost never affected by rain but requires bigger dishes and slower bandwidth compared to Ku-band connections. On the other hand, Ku-band is faster, experiences less microwave interference, and requires less power to run – but is less reliable with bad weather conditions.
MzansiSat’s potential military applications are significant, due to the nature of the military being mobile and possibly in remote areas without connectivity. Connectivity everywhere would be potentially be life-saving.
Consumers in remote areas will benefit, even though satellite is higher in latency than fibre and LTE connections. While this level of latency is high (a fifth of a second in theory), satellite connections are still adequate for browsing the Internet and watching online content.
The Internet of Things (IoT) may see the benefits of satellite Internet before consumers do. The applications of IoT in agriculture are vast, from hydration sensors to soil nutrient testers, and can be realised with an Internet connection which is available in a remote area.
Stephanopoli says that e-learning in remote areas can also benefit from MzansiSat’s presence, as many school resources are becoming readily available online.
“Through our network, the learning experience can be beamed into classrooms across the country to substitute or complement local resources within the South African schooling system.”