Cyber Fraud Threatens Financial Sector in Namibia: Allianz Risk Barrometer Reveals Worrying Trends

Growing Threat from Cybercrime

The financial sector in Namibia is facing a growing threat from cybercrime, with incidents such as IT outages, ransomware attacks, and data breaches ranking as one of the top four risks for businesses in the country. According to the 2023 Allianz Risk Barometer, cybercrime has emerged as the number one risk globally for the second year running.

Lack of National Cybersecurity Strategy

Despite the lack of an official national cybersecurity strategy in Namibia, the Ministry of Information and Communication Technology (MICT) is working on developing one. The MICT recognizes the importance of a robust cybersecurity framework to protect against emerging threats.

New Developments in Cybersecurity

• The first-ever Cybersecurity Council was launched last year to provide a platform for the financial industry to share strategies to combat cyber fraud.
• The frequency of ransom attacks remains high this year, with the average cost of a data breach reaching an all-time high of over N$60 million.

Top Risks Facing Namibian Businesses

According to the Allianz Risk Barometer, the top risks facing Namibian businesses are:

1. Changes in Legislation and Regulation
2. Climate Change
3. Macro-Economic Developments

Additional Challenges

A shortage of skilled workers, supply chain disruptions, and new technologies are additional challenges facing Namibian businesses.

Expert Insights

• Most companies view the cyber threat as the biggest ever.
• Cyber insurance claims remain high.

About the Allianz Risk Barometer

The Allianz Risk Barrometer is an annual business risk ranking that has been published for 12 consecutive years. It provides insights into the top risks facing businesses globally and regionally, helping companies to better prepare for emerging threats.