Although postgraduate students are required to be self-directed, this is not always the case. The aims of this study were twofold. Firstly, we investigated whether the use of problem-based projects supported students in implementing different cryptography algorithms as part of a group assignment. Secondly, we determined to which extent the use of problem-based projects enhanced students' self-directed learning. A qualitative methodology was followed. A cohort of 21 honours students enrolled for this elective course in Information Security. Students worked mainly in small groups of two on a project. Data collection involved completion of open-ended questions regarding information security and students' previous experiences in problem-based environments, completion of project sheets and narrative reflections regarding their project work. The data were manually coded to identify certain patterns of meaning. Results showed that problem-based projects provided opportunities for learning 'useful things in life' and strengthened team members' knowledge and skills. Problem-based projects served as a catalyst for enhancing students' self-directed learning in this Information Security course, which is beneficial for addressing real-life scenarios in the Information Technology profession. Additionally, an integrated model for self-directed learning skill development in a problem-based context was proposed.