Cybercrime Epidemic Hits Finance Industry in Burkina Faso, Leaving Institutions Vulnerable

Cybersecurity Concerns Top List of Risks for Financial Services Sector in Africa

For the second year running, cybersecurity concerns have emerged as a major threat to the financial services sector in Africa. According to the latest African Financial Industry Barometer report, 74% of executives cite a need for improvement in cybersecurity regulations. The report, developed in partnership with the Africa Financial Industry Summit and Deloitte, reveals that macroeconomic conditions, political and social instability, and security risks are also major concerns for financial institutions in Burkina Faso.

Cybercrime Incidents Result in Estimated Annual Losses of $3.5 Billion to $4 Billion

The report highlights the significant impact of cybercrime on the finance industry in Burkina Faso. With an estimated 97% of surveyed leaders ranking cybercrime and regulatory constraints on cybersecurity as the leading threat to the financial services industry, alongside worsening economic conditions. The country has witnessed military coups and internecine conflict recently, fueling unease among executives.

Recent Cyber Attack Highlights Growing Concerns

Just recently, a Nigerian cybersecurity professional uncovered a dark web forum offering leaked data containing customer information, login details of employees, and API access for 43 Nigerian banks. The data was allegedly available for purchase on the dark web forum for $250,000. This worrying trend has led to the creation of groups aimed at fighting fraud by sharing data.

African financial institutions are increasingly willing to share incident risk data, fraud data, and data enabling interoperability of digital payments. However, only 15% of surveyed financial industry leaders consider the cybersecurity regulations in Burkina Faso effective, with 74% calling for improvement.

Economic Challenges Add to Concerns

The lack of effective regulation is a major concern, given the country’s recent economic struggles, which have seen economic growth decline to 3.1% in 2023 from 4.1% in 2021. Despite these challenges, banks and financial institutions remain optimistic about their business prospects, with only 15% predicting that unfavourable macroeconomic conditions will persist over the next three years.

Key Takeaways

Cybercrime is a significant threat to the finance industry in Burkina Faso
Estimated annual losses due to cybercrime range from $3.5 billion to $4 billion
Only 15% of surveyed financial leaders consider cybersecurity regulations effective
African financial institutions are increasingly willing to share data to fight fraud