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Postbank's efforts to curb fraudulent crimes that preyed on its previously weakly secured systems have proven to be effective in the past three months, as fewer crimes were detected.
This comes after the bank lost R18 million to theft in December, which prompted the temporary pause of withdrawals by social grant recipients. The bank, which has lost over R150 million to fraudulent transactions by external culprits along with insiders, has introduced robust measures that have reduced cybercrime activity.
Speaking to City Press on Tuesday, the bank's spokesperson, Bongani Diako, said:
Last year, the Sunday Times reported that an audit of some of the bank's most secure systems, which include its integrated grant payment system (IGPS) and other databases, showed that 40 employees logging on to the system used the same key. Besides that, the IGPS did not have a built-in tool in its software that was designed to flag anomalies and detect crime.
Diako explained that the improvisations of the bank’s technological system include the current early warnings on any cybercrimes directed at their environment.
READ: Grant payments halted at ATMs for now as criminal network targets system
“This is a continuous improvement process that we are doing on an ongoing basis. In addition, the grants payments system has been migrated to a more secure platform which has added a security measure, and we are also in the process of migrating the grants payments to our core banking systems as a long-term plan,” adds Diako.
Subsequently, the IGPS, wherein more payment risks have been identified, will be cancelled and decommissioned, he said.
Meanwhile, Postbank has commenced the initial phases of replacing the SA Social Security Agency (Sassa) systematically as directed by the SA Reserve Bank.
“The Sassa grants cards are still being used to access grants as that has been allowed by the Reserve Bank, which has allowed us an extended period to use the cards while we simultaneously implement a programme of replacing them.”
He conceded that the details of the programme would be announced in due course as, at present, the bank was re-issuing beneficiaries' cards on each month of each card’s expiry date.
Early this year, the Reserve Bank granted Postbank a chance to update its security to deter breaches and other outstanding issues for it to secure participation in the national payment system.
READ: Western Cape social development fuming over decision to suspend Sassa grant ATM withdrawals
Meanwhile, the former minister in the presidency, Mondli Gungubele, announced that Cabinet had approved two bills to enable the SA Post Office to fast track its new technological developments and draw Postbank a step closer to becoming a complete operational bank.
Regarding the incidents of theft that occurred last year, Diako said a forensic investigation was still under way and a preliminary report had been submitted to the shareholders.
“Once concluded at the discretion of the shareholder, the outcomes of this investigation, including any law enforcement recourses where necessary, could be made known,” added Diako.
The bank is set to spend R400 million over the next three years to upgrade and modernise its information technology systems.
