Financial Crime World

Cybercrime on the Rise in Malawi’s Fintech Industry, Survey Reveals

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A recent survey has highlighted the growing concern of cybercrime in Malawi’s fintech industry, with 74% of executives at top financial institutions citing cybersecurity regulation as a major area that needs improvement.

Key Findings

  • 97% of respondents consider cybercrime to be a significant threat to their organizations
  • Macroeconomic conditions, political and social instability, and security risks are among the most prevalent threats facing financial institutions in Malawi
  • 97% of surveyed leaders ranked cybercrime and regulatory constraints on cybersecurity as the leading threat to the fintech industry alongside worsening economic conditions

The Growing Threat of Cybercrime

The fintech industry is experiencing rapid growth, with many banks and financial institutions investing heavily in digital technologies to improve customer service and increase efficiency. However, this increased reliance on technology has also made these organizations more vulnerable to cyber attacks.

  • Just last week, Nigerian cybersecurity professional David Sennaike published an article claiming to have found a post on the dark web forum Breached.co that offers leaked data containing customer information, login details of employees, and API access of 43 Nigerian banks
  • The data is believed to have been stolen from these institutions’ systems and is being sold on the dark web for as much as $250,000

Incidents in Malawi’s Fintech Industry

The survey also found that fintechs in Malawi are not immune to cyber attacks, with several incidents reported in recent years.

  • In 2022, MTN suffered a major cyber attack that resulted in the theft of $53 million from its mobile money service
  • Flutterwave, a leading fintech company in Nigeria, has also been the target of alleged cyber attacks and fraud incidents

Response to Cyber Threats

In response to these threats, several groups have been established to share data and fight against fraud.

  • 50% of financial institutions surveyed are willing to share incident risk data
  • 42% are willing to share fraud data
  • However, the survey also highlighted the need for improvement in cybersecurity regulation, with only 15% of respondents considering the current regulatory framework to be effective

Recommendations

The report’s findings highlight the need for Malawi’s fintech industry to prioritize cybersecurity and data sharing to mitigate the risks posed by cyber attacks.

  • The government and regulatory bodies must work together to improve the cybersecurity framework and provide guidance on best practices for financial institutions
  • Financial institutions must invest in robust cybersecurity measures to protect their systems and data
  • Data sharing and collaboration between financial institutions are crucial in fighting against fraud and cybercrime

Conclusion

The survey’s findings underscore the importance of prioritizing cybersecurity in Malawi’s fintech industry. The government, regulatory bodies, and financial institutions must work together to mitigate the risks posed by cyber attacks and ensure a secure and stable fintech ecosystem.