Companies must act now on CIPC hack

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A lack of visibility into the extent of the CIPC hack and the information compromised puts companies at risk of fraud.

Companies and Intellectual Property Commission holds the registration details of companies, co-operatives and intellectual property rights within a vast database that comprises ID numbers, addresses, contact information and more.

The CIPC website allows for organisations and individuals to verify a company using basic information such as the registration number, but the moment you get real information about directors such as their ID and where they live, there is ample opportunity for fraud and identity theft. For example, using a company’s registration and director information, criminals can place an order for laptops with fake banking information and a fake address. The firm providing those laptops will then chase the company for payment of an order it didn’t make. Then the company is liable for the costs, not the threat actor.

As the extent of the hack emerges, companies need to remain on the alert for at least six to 12 months – this type of attack has a long tail, and organisations need to protect themselves through constant vigilance. The risk is that many companies won’t realise they’ve been targeted until an incident is flagged. This can then cost them significantly in terms of reputational damage, financial loss and even customers.

 

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