Social Development Launches Investigation Into Vulnerabilities in Social Grant Systems After SRD Grant Irregularities

The Department of Social Development has launched a comprehensive investigation into vulnerabilities across all social grant systems following the discovery of irregularities in the social relief of distress (SRD) grant application process. This investigation was announced by Minister Sisisi Tolashe on Wednesday during a briefing to the social development portfolio committee, alongside officials from the South African Social Security Agency (Sassa).

The inquiry follows findings by two Stellenbosch University computer science students, Veer Gosai and Joel Cedras, who identified weaknesses in the SRD grant payments late last year. Minister Tolashe emphasized that any allegations of fraud are treated with the utmost seriousness, as safeguarding personal data and the integrity of the system is paramount.

A report by Masegare and Associated Incorporated revealed that while the SRD system’s security is considered medium risk, there are vulnerabilities. The investigation found that fraudulent websites were mimicking the Sassa SRD system, deceiving beneficiaries and harvesting personal information. Additionally, weak verification processes and limited use of biometrics were found to allow fraudulent claims to go undetected.

Minister Tolashe and her department acknowledged these findings, agreeing with Masegare’s assessment, and vowed to address the identified gaps swiftly. Plans are already in place to enhance Sassa’s cybersecurity measures and increase public awareness to protect beneficiaries from fraudulent activity.

The minister also praised the two students for their role in highlighting these issues, which had previously gone unnoticed. Without their input, the department might not have been aware of these vulnerabilities, which are now driving changes in the system.

Alfred Mudau, the department’s internal audit executive, shared that the audit into the SRD grant’s vulnerability and penetration testing is being used to inform a broader investigation into the system’s weaknesses. This phase two investigation will examine the extent of fraud and identify how ineligible beneficiaries have been receiving social grants, including the SRD grant.

Sassa’s acting CEO, Themba Matlou, acknowledged the challenges posed by fraud, explaining that the SRD system, which processes millions of applications monthly, faces increased exposure to risks. Sassa reported detecting 1,795 identity theft cases in the 2022/23 and 2023/24 financial years. To mitigate these risks, Sassa has planned to introduce biometric verification for all online applications in the 2025/26 financial year.

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