Spyware syndicate hits govt

2008-06-10 13:17

Durban - The government has identified at least 27 cases where a syndicate has swindled over R199m from government departments in four provinces over the past three years - using cyber spyware.

This was revealed by KwaZulu-Natal MEC for Finance and Economic development Dr Zweli Mkize in Durban on Tuesday.

He said the Commercial Crime Unit had made 32 arrests for 86 counts of fraud in Durban and Pietermaritzburg but the syndicate was still operating.

Some of the alleged perpetrators had appeared in court and their assets had been seized. Several state employees had also been dismissed.

Advanced spyware

Motlalepula Motaung, head of the Internal Audit Services said the syndicate had been using advanced spyware to commit the cyber crime - which has been identified in four provinces: KwaZulu-Natal, Mpumalanga, Limpopo and the Eastern Cape.

She said the crime was first identified in 2005.

In the 2005/2006 financial year, eight fraud cases were opened and in 2007/2008, another 18 cases were reported.

The syndicate has defrauded government departments including the transport, education, health, housing and agriculture departments of over R199m.

Motaung explained that the syndicate had been identifying corrupt officials at government departments and would also approach suppliers that the department did business with.

"Officials and suppliers would then be given spy-work - they would be asked to connect a spy-plug onto a computer and download any information they want," she explained.

Motaung said the syndicate would then be able to access any information without needing passwords and would use it to defraud the government of money.

Corrupt officials

She said the corrupt official and supplier would get a portion of the money for their criminal work.

The spyware can download information that is nearly a year old as well as information that had been typed out, but not saved.

The device is as small as a memory stick and is connected to the back of a PC.

Mkhize said it was extremely easy for crooked officials to use the spyware.

"Just by leaving your computer running and going out for a smoke means it could be accessed by a corrupt official," he said.

He added that he wanted civil servants to be aware of this new type of crime.

In this regard, the KwaZulu-Natal Treasury has launched a new project called Unembeza 2008 to develop and implement preventative measures to secure computer systems.

Banks also targeted

Answering questions from reporters, Motaung said the syndicate had also been targeting banks but that she could not provide any immediate details.

Asked why it had taken the government three years to come up with an operation to combat this crime, Motaung said initially the aim was to investigate the crime and find out more about it - "but now the objective is to find a solution".

She was unable to say why government had revealed this information so late.

Mkhize, meanwhile, said the operation was in line with government's commitment to eradicate corruption and ensure good governance.

- SAPA