Cybersecurity Threats to Financial Institutions in Kenya on the Rise
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Kenya’s financial technology sector has experienced significant growth over the years, but so have the cunning tactics of cybercriminals. According to recent statistics, the country has emerged as one of the most targeted nations globally, with a staggering 860 million cyberattacks reported in the past year alone.
The Communications Authority’s Concerns
The Communications Authority has expressed deep concerns over the escalating frequency, sophistication, and scale of these cyber threats, particularly targeting Kenya’s critical information infrastructure. Digital banking and mobile services have also been affected, leaving many individuals vulnerable to financial losses.
Data Custodians and Customer Awareness
According to Michael Odundo, a research analyst at SIB, the first line of defense against cyberattacks lies with data custodians, while the second is the customer who lacks awareness. “As wealth management applications become increasingly popular on mobile and through cloud-based services, attacks such as Distributed Denial of Service (DDoS), ransomware, and phishing continue to rise,” he warned.
Capital Markets Authority’s Soundness Report
The Capital Markets Authority’s latest soundness report highlighted the susceptibility of financial institutions to cyber threats, particularly as they rely more heavily on emerging technology amidst growing digitization. The report cautioned that these vulnerabilities can enable manipulative, illegal, and abusive trading practices, increasing the risk of automated rogue trading strategies that could contribute to flash crashes.
Fintech Companies’ Response
Fintech companies are fighting back against these threats by implementing measures such as:
- Two-factor authentication
- Sensitization
- Data encryption
However, the cyber security skills gap remains a significant challenge, with experienced professionals being hard to find and expensive to retain.
Government Efforts
In response, 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. Despite these efforts, more needs to be done to address the growing cyber threats faced by financial institutions in Kenya.
Conclusion
As the country continues to evolve digitally, it is imperative that individuals, organizations, and government agencies work together to fortify their defenses against an ever-evolving landscape of cyber threats.