AVBOB, one of South Africa’s largest funeral and insurance providers, is working to restore its digital infrastructure following a cyberattack that compromised its IT systems and disrupted services nationwide.
The incident forced staff at more than 300 branches to revert to manual processing as online services and some branch operations were affected. Customers attempting to access services or pay premiums experienced delays and uncertainty.
An AVBOB spokesperson confirmed the company has notified the Information Regulator and is conducting a comprehensive data audit to determine whether any customer information was exposed. “We cannot confirm if this incident is a ransomware attack or a data breach as investigations are underway to establish the exact nature of the incident and how many customers have been potentially affected,” the spokesperson said. “We are currently still performing an audit on the data and to establish the full extent of the impact on our customers. We would rather not speculate before this process has been completed.”
Unconfirmed reports from some employees suggest a ransomware demand may be involved, with allegations that individuals claiming to be journalists have demanded payment from the company. AVBOB has not verified these claims and emphasized that investigations remain ongoing.
Cybersecurity specialists warn that attacks targeting corporate databases and critical digital infrastructure are growing more frequent and sophisticated. “We have to understand that the hackers, the bad guys, their core business is to try to get into our enterprises, our companies, and our public sector, state-owned entities,” one specialist noted. “That’s their core business, which means 24 hours a day, all they’re trying to do is get lucky once.”
Experts also highlighted the role of artificial intelligence in accelerating cyber threats. “AI being used by the bad guys is just trying to do the exact same thing the bad guys were doing before,” a cybersecurity expert explained. “It’s trying to get into your business, hold you up for ransom, extract your key data, and stop your operations. They’re just doing it faster and with better tools.”
AVBOB has assured clients that all branches remain open and that no customer will be penalized for delays resulting from the system outage. The company has not yet provided a timeline for the full restoration of digital services.
“We sincerely apologize for the inconvenience caused and thank our clients and partners for their patience and understanding,” the AVBOB spokesperson added.
The incident has renewed attention on the escalating cyber risks confronting South African businesses and government institutions, underscoring the urgent need for robust digital defenses.
