Financial Crime World

Cybercrime Threatens Kenya’s Financial Industry as Attacks Reach Alarming Proportions

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Kenya’s financial technology sector has experienced significant growth in recent years, but this development has been accompanied by an increase in sophisticated cyber attacks. The country has become a hotspot for hackers, who are using new tactics to target the financial sector and digital infrastructures.

Rise of Cyber Attacks in Kenya

According to the Communications Authority, Kenya witnessed a staggering 860 million cyber incidents in the past year, with 123.9 million threats recorded during the three months leading up to September last year. The regulator expressed concern over the escalating frequency, sophistication, and scale of these attacks, particularly targeting critical information infrastructure.

Major Institutions Affected

The latest attacks have affected major institutions such as:

  • Kenya Power and Lighting Company
  • Kenya Railways Corporation
  • National Transport and Safety Authority
  • Digital banking and mobile services

Contributing Factors

Analysts point to a lack of awareness among customers as a major contributor to these attacks, with hackers using tactics such as:

  • Phishing attempts
  • Data breaches
  • Gaining access to sensitive information

Increased Risk due to Emerging Technology

As wealth management applications become increasingly popular on mobile devices and cloud-based services, the risk of cyber attacks is rising. The Capital Markets Authority (CMA) soundness report highlights the vulnerability of financial institutions, which are increasingly dependent on emerging technology amidst growing digitization.

Measures to Combat Threats

To combat these threats, fintech companies are using strategies such as:

  • Two-factor authentication
  • Sensitization
  • Ensuring data is housed in different data centers
  • Reducing attack surfaces
  • Conducting regular employee cybersecurity training

Cybersecurity Skills Gap

Despite these efforts, the cyber security skills gap continues to hinder individuals’, organisations’, and governments’ ability to find and retain talent. Experienced cybersecurity professionals are hard to find and expensive to retain, making it challenging for businesses to fortify their defenses against an ever-evolving landscape of cyber threats.

Government Initiatives

To address this gap, the Kenyan government has partnered with various organizations, created cybersecurity laws, and set up a data protection office to ensure the privacy of personal data.

Conclusion

As the threat of cybercrime continues to loom over Kenya’s financial industry, it is crucial that businesses and individuals take proactive measures to safeguard their digital infrastructure and protect against these threats.