Namibian Financial Sector Exposed to Cyber Threats as USSD Codes Remain Popular

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The Namibian financial sector is facing a heightened risk of cyber attacks due to its reliance on unstructured supplementary service data (USSD) codes, according to industry experts.

The Vulnerability of USSD Codes

A recent report by the GSM Association estimates that 90% of mobile money transactions in Africa are still driven by USSD codes. These codes are particularly vulnerable to security threats, making them a significant risk for financial institutions and individuals who rely on them.

Remote Unauthorized Access and Tampering

A Growing Concern

The Financial Inclusion Global Initiative and the International Telecommunication Union have identified vulnerabilities in USSD code usage, including remote unauthorized access to and tampering with mobile devices. This lack of security makes it easy for cybercriminals to exploit vulnerabilities and steal sensitive information.

The Challenges Faced by Namibia

In Namibia, where USSD codes remain a popular means of accessing financial services, especially on feature phones, the lack of national threat intelligence and communication centers has exacerbated the problem. The country’s relative lack of intelligence flow and mechanisms for sharing information on unique threats and vulnerabilities hinders digital expansion and growth.

Low Cybersecurity Awareness

A Major Challenge

Low cybersecurity awareness in rural and limited-access populations is another significant challenge facing the country. In areas where technology infrastructure is unequal, information regarding security and threat awareness does not spread evenly, leading to a low level of awareness, especially among vulnerable communities.

The Need for a Multi-Stakeholder Approach

Experts warn that a meshed approach is required, including partnerships with the private sector for the development of secure applications and infrastructure for data and asset protection. Targeted solutions are needed, especially in Namibia’s context of low digital inclusion and literacy.

Raising Awareness

A Building Block

Raising awareness is one building block for an improved security posture. However, it is essential to have a multi-stakeholder approach that also includes targeted solutions to build up security nationally.

The Role of the Government and Private Sector

The Payment Association of Namibia has called on the government and private sector to work together to develop secure applications and infrastructure, as well as provide cybersecurity awareness training to vulnerable populations.

A Culture-Specific Approach

Essential

Experts stress the need for a culture-specific approach to building security awareness. Programs built for South Africa may not be ideal for Namibia due to cultural and language differences.

Conclusion

The Namibian financial sector is exposed to cyber threats due to its reliance on USSD codes, which are vulnerable to security threats. To address this issue, a multi-stakeholder approach is needed, including partnerships with the private sector, targeted solutions, and a culture-specific approach to building security awareness.