Cybersecurity Threats in Finance: A Growing Concern in Ghana
In recent years, cybersecurity has become a critical component of responsible finance in Ghana and globally. The digitalization of finance has expanded access to financial services, but it has also exposed individuals and institutions to heightened financial risks.
Risks of Cyber Threats in Inclusive Finance
The landscape of cyber threats has grown substantially more complex, with a wide array of dangers including:
- Ransomware
- Phishing
- Distributed Denial of Service (DDoS) attacks
- Supply chain infiltrations
These threats expose critical vulnerabilities that can disrupt operations, undermine the integrity of financial institutions, compromise sensitive data, and erode consumer trust.
High-Profile Incidents
High-profile incidents have highlighted the increasing prevalence and sophistication of cyber threats. For example:
- In 2016, an attack on the Central Bank of Bangladesh attempted to steal nearly $1 billion from a Federal Reserve Bank of New York account.
- More recently, the Central Bank of Bangladesh received threats that caused them to halt several internal online services to prevent another potential cyberattack.
Targeting Fintechs and Small Financial Institutions
Cyber threats targeting fintechs and small financial institutions often go unnoticed in the media, but their impact is significant. In Africa, the financial sector is increasingly recognizing cybercrime as a major risk. In Ghana, public unawareness of tax collection mechanisms has facilitated fraudulent account information collection, eroding trust in financial institutions and the digital economy.
What Is Needed to Fight Cyber Threats in DFS
The evolving digital finance landscape calls for a proactive and multi-faceted approach to strengthen cybersecurity and protect users from evolving cyber threats. To date, several initiatives and strategies have emerged to address these challenges.
Human-Centric Approach to Cybersecurity
A human-centric approach to cybersecurity is crucial to addressing the issues of the most vulnerable populations. Consumer protection by design involves thinking of consumer protection at the time of designing products and services, and not as an afterthought. This means taking proactive measures to safeguard users’ financial well-being in an increasingly digitalized financial landscape.
Collective Action
The responsibility lies on all of us to ensure the outcomes of responsible digital finance. Collective action is needed to address the risks that will emerge as we traverse this digital frontier.