Cybercrime: The Rising Threat in an AI-Driven World

In a striking shift that underscores the growing menace of cyber threats, Discovery, a prominent financial services group, has elevated cybercrime to the foremost position in its annual risk assessment. The firm, which manages critical financial services for millions, has identified advanced AI technologies as a catalyst that is bolstering the capabilities of cybercriminals, enabling them to conduct attacks with unprecedented speed and effectiveness.

According to its integrated annual report for the fiscal year ending 30 June 2026, Discovery lists “cybercrime and cybersecurity” as the top risk in its risk register, marking a significant move from its previous year’s ranking where it held the third position. This update indicates a shift in perception that emphasizes the urgency for businesses to fortify their defenses amidst a rapidly evolving cyber landscape.

“The increased use of AI, including rapidly advancing frontier models, materially increases the speed and scale at which cyber criminals can automate attacks, craft adaptive malware, deploy deepfake-driven fraud and rapidly exploit software vulnerabilities,”

states the report. This alarming revelation signals a new era where traditional cybersecurity measures may struggle to keep pace with the innovative tactics employed by cybercriminals. With Discovery’s South African businesses catering to over six million lives, the risks associated with a compromise could lead to serious repercussions not only for the firm but also for its clients.

As noted in the report, the potential for cyber attacks to outstrip existing detection and response capabilities poses a substantial threat. The firm warns that insufficient defenses could result in severe business disruptions, compromises of sensitive data, and significant financial losses.

“Attacks could outpace existing detection, patching and response controls, leading to business disruption, data compromise and financial loss,”

the report emphasizes. This plea for heightened vigilance is a wake-up call for businesses across sectors, underlining the importance of robust cybersecurity infrastructures in today’s digital-first world.

Discovery highlights that while its “significant investment” in cybersecurity has bolstered its defensive capabilities, the relentless pace of AI evolution renders the threat landscape increasingly unpredictable. The report advocates for continuous improvement and rapid remediation of vulnerabilities as a necessary strategy to navigate these challenges. However, Discovery refrains from disclosing the specific amounts allocated to its cybersecurity expenditures.

Preparing for Quantum Threats

In response to these evolving risks, Discovery is proactively reviewing its “cryptographic assets.” One of its strategic focuses is on embracing quantum-safe practices, which involve transitioning to encryption methods that can withstand the potential future threats posed by quantum computing technology. As quantum computers become more capable, they could potentially unravel the encryption methods currently in widespread use.

To further bolster its defenses against cyber threats, Discovery has committed to conducting regular penetration testing and ensuring the security of its third-party vendors and partners. This vigilance is crucial as businesses increasingly rely on interconnected services and collaborations, making the security posture of one entity pivotal to the overall security framework of the entire network.

Discovery’s focus on cybersecurity spans beyond the immediate threats posed by cybercriminal activity. The firm also recognizes the risks associated with the adoption of AI technologies within its operations. The report indicates that “AI adoption and competitive advantage” has ascended to the third position on its risk register, prompting concerns about falling behind competitors due to a lag in AI integration.

“If AI adoption does not keep pace with technological developments, changing client expectations or competitor innovation, this could affect speed-to-market, personalisation, operating efficiency and the differentiation of the group’s propositions,”

the report articulates. As the business landscape rapidly transforms, the ability to harness AI not only for defensive mechanisms but also as a competitive leverage is critical for maintaining market leadership.

Moreover, Discovery’s engagement with AI technology also extends to its workforce strategy. The firm is actively working on strategies that enable “reskilling and redeployment of employees impacted by AI-related role changes.” However, the report does not provide specific numbers regarding affected staff, raising questions about the broader implications of AI on employment within the sector.

As of June 2026, Discovery employed over 15,200 individuals, reflecting a slight increase from the previous year’s figure of 15,000. This growth amidst shifts in operational dynamics signals a challenging yet transformative phase for both the enterprise and its employees.

Discovery’s recent assessment of cyber risks mirrors similar caution exercised by other major players in the market, such as Shoprite, a leading retail chain. Earlier reports indicated that Shoprite had categorized information security, including cyber risk, as its top priority, highlighting the seriousness with which organizations are approaching this growing threat.

Shoprite’s assessment rated its own controls against cyberattacks and data breaches as only “partially effective,” which highlighted vulnerabilities in its cybersecurity stance. In the 2026 financial year, Shoprite reported four occurrences of data breaches, up from three the previous year, emphasizing the increasing frequency of such incidents amidst a proclaimed “zero tolerance for security breaches and unmitigated critical vulnerabilities.”

Our Take

This shift in Discovery's risk assessment underscores the urgent need for financial services to adapt their cybersecurity strategies in the face of rapidly evolving AI-driven threats, emphasizing the critical importance of proactive investments in robust defenses.