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PRIVACY
Tech

º£½ÇÊÓÆµ's 'digital economy' is a 'digital illusion' with firms using outdated tech

A new report has warned that the º£½ÇÊÓÆµ's digital economy is at risk because businesses are still relying on outdated, paper-based verification processes

The FBI claimed cybercriminals siphoned off more than £12billion in 2024 alone, with such attacks seeing a major 33% spike(Image: Getty)

Thousands of º£½ÇÊÓÆµ SMEs are still relying on archaic, paper-based verification methods, leaving them susceptible to cyber threats, fraud, and impeding their growth and trust.

Umazi, a regtech company, has released a report urgently calling for a revamp of the º£½ÇÊÓÆµ's corporate identity framework, highlighting that outdated verification systems are compromising the strength of the º£½ÇÊÓÆµ's digital economy, as reported by .

Umazi's CEO Cindy van Niekerk commented on the stark contrast between perception and reality: "The irony is painful," she said.

"While we talk about fintech and AI leadership, the average SME is still sending scanned passports and PDFs to prove they exist. This isn't a digital economy – it's a digital illusion."

The prevalence of cyber attacks is escalating, with the report revealing that 70% of SMEs are concerned about the theft of their business identity, a fear that grows as cybercriminals utilise sophisticated AI techniques such as deepfakes and synthetic identities.

Van Niekerk contends that without updated digital verification methods, small businesses are stuck with "manual, fragmented" checks that not only fail to deter criminals but also hinder legitimate operations with unnecessary delays and redundancies.

SMEs, unlike larger corporations with dedicated legal teams and established brand recognition, are particularly at risk of impersonation and fraud, yet they suffer most from these dated procedures.

Regulatory blindspot

This call to action comes amid increasing focus on the º£½ÇÊÓÆµ's overall cyber resilience.