Cybersecurity Concerns Mount as Hackers Target South Africa's Lotto Amid Licensing Battle

South Africa's National Lottery is facing cybersecurity threats with hackers allegedly targeting the Lotto's website in a bid to expose the winners' identities. Reports from the Sunday Times have noted the increase in such malicious activities against Ithuba, the lottery operator, which also faces internal allegations of manipulating Lotto draws.

In the wake of an intense bidding war for the fourth license to run the National Lottery, Ithuba has become the focus point of speculation and doubt. It is under the intense scrutiny of competitors and the public alike, as more than 18 companies strive to obtain the lucrative opportunity previously managed by Ithuba since 2015.

Ithuba CEO, Charmaine Mabuza, has acknowledged the recent spike in cyber attacks, with the company witnessing unusual levels of traffic directed at its website. This is not the first instance where the operators had to secure an interdict against a hacker who was able to access the names of numerous Lotto players.

Ithuba has taken a firm stance on protecting its customer data and is actively boosting its cybersecurity measures. However, Mabuza expressed unease, suspecting that the interdict provided grounds for accusations regarding the insecurity of their IT systems. This perspective is particularly troubling considering the implication it might have on Ithuba's chances in the current bidding process.

Besides the cybersecurity challenges, Mabuza is also contending with allegations of rigging Lotto numbers, purportedly to secure jackpots for herself and her family. Critics have tied the cessation of live TV broadcasts to these accusations, though Mabuza attributes the change to Ithuba's shift to random number generator technology.

Such allegations aren't new to the National Lottery. In December 2020, Velanor, a company with bleak corporate visibility, received substantial funds from the Lottery with no clear justification for the allocation. The public's attempt to investigate the company's activities and its allocated funds were inconsequential, leading to heightened skepticism about the transparent functioning of the Lottery's financial dealings.

The dispute over the National Lottery’s control has been contentious. Ithuba's dispute with Hosken Consolidated Investments (HCI) in 2019 over the premature repayment of a multi-million loan was one of the instances that brought Lottery operations into question. HCI's demands extended beyond financial terms to a significant stake in control and earnings from Lottery operations.

As Ithuba grapples with securing the license for another term—unprecedented in its history—the competing interests of other corporations and the uncertain public confidence pose a significant challenge.

The National Lottery's position as a high-stakes economic instrument calls for an exemplary standard of transparency and security. With the recent cybersecurity threats and ongoing allegations, the underlying systems’ fortitude and ethical management are more critical than ever.

Lotto players, stakeholders, and the broader public will be keeping close tabs on how this saga unfolds, as its impact stretches far beyond the confines of corporate boardrooms, potentially affecting the essence of fair play in South Africa’s lottery system.