The financial group Discovery has placed cybercrime at the top of its risk register, warning that advanced artificial intelligence models are accelerating attacks to such an extent that they may outpace existing defense systems.
In its annual integrated report for the period up to June 30, 2026, the group ranked 'cybercrime and cybersecurity' as the number one among ten key risks, increasing its ranking from third place the previous year. Geopolitical and macroeconomic uncertainty, which was the main risk last year, dropped to second place.
According to the report, 'the increased use of AI, including rapidly evolving advanced models, significantly increases the speed and scale at which cybercriminals can automate attacks, create adaptive malware, conduct deepfake fraud, and quickly exploit software vulnerabilities.'
For financial groups like Discovery, it is noted that attacks 'can bypass existing detection, patching, and response mechanisms, leading to business disruptions, data compromise, and financial losses.'
Discovery stated that significant investments in its cybersecurity capabilities have strengthened its control. However, as AI adoption accelerates, the threat landscape becomes less predictable, underscoring the need for continuous strengthening of controls and faster vulnerability remediation. The report does not specify the amount of the group's spending on cybersecurity.
Discovery's operations in South Africa serve over six million people, and as of June, Discovery Bank had more than 1.56 million customers.
Preparation for quantum computing
As part of its response measures, Discovery is reviewing its 'cryptographic assets' to transition to quantum-resistant practices. This means moving to encryption designed to withstand future quantum computers, which could potentially break some widely used current encryption methods. The group also conducts regular penetration testing and verifies the security of key third-party suppliers and partners.
Aspects related to AI are also featured in the register. The risk of 'AI adoption and competitive advantage' rose from fifth to third place, and the concern here relates to falling behind. The report indicates that 'if AI adoption does not keep pace with technological development, changing customer expectations, or competitor innovations, it could affect product time-to-market, personalization, operational efficiency, and the group's offering differentiation.'
Discovery is also considering the impact of AI on its workforce. Its personnel strategy includes 'upskilling and redeploying employees affected by changes in roles related to AI,' although the report lacks specific figures. As of June, the group employed over 15,200 people, compared to more than 15,000 the previous year.
Discovery ranks behind Shoprite. This retailer places information security, including cyber risks, first among its six main risks and assesses its controls against cyberattacks and data breaches as 'partially effective,' which is the weakest rating it assigns to any of these risks, according to TechCentral early this month.
Shoprite recorded four data breaches in its 2026 financial year, compared to three the previous year and one the year before, despite declaring 'zero tolerance for security breaches and unaddressed critical vulnerabilities.' Its report also states that the growth of AI tools and the increasing sophistication of cybercrime make more frequent and serious incidents more likely.