Cybercrime Threat Looms Large in Togo’s Finance Industry

Top Executives Identify Cybersecurity as Number One Risk Factor

For the second consecutive year, top executives in Togo’s financial institutions have identified cybersecurity concerns as their number one risk factor. According to the 2023 African Financial Industry Barometer survey, a staggering 97% of respondents consider cybercrime a significant threat to the industry.

Macroeconomic Conditions and Political Instability Also Pose Threats

The report, developed in partnership with the Africa Financial Industry Summit and Deloitte, also revealed that macroeconomic conditions, political and social instability, and security risks were identified as major threats facing financial institutions in Togo. The findings may be attributed to the recent spate of military coups and internecine conflicts in some regions.

Cybersecurity Incidents Cause Significant Financial Losses

Cybersecurity incidents have resulted in losses estimated at between $3.5 billion and $4 billion every year across Africa. A recent incident, revealed by Nigerian cybersecurity professional David Sennaike on social networking site LinkedIn, exposed a dark web forum offering leaked data containing customer information, login details of employees, and API access from 43 Nigerian banks, including those in Togo.

The worrying trend has led to the creation of several groups aimed at fighting fraud by sharing data. The Africa Financial Industry Barometer report also shows that African financial institutions are becoming more willing to share incident risk data, fraud data, and interoperability data for digital payments.

Regulatory Framework Needs Improvement

However, despite concerns about cybersecurity threats, only 15% of respondents consider the current regulatory framework in Togo effective. A majority of 74% believe there needs to be improvement, while 11% do not know how cyber and information security is regulated or believe it is non-existent.

Economic Outlook Remains a Concern

The economic outlook is also a major concern for financial institutions in Togo, with economic growth expected to dip to 3.1% in 2023. Despite this, banks, insurance firms, and other financial institutions remain optimistic about their business prospects.

Prioritizing Cybersecurity Measures

Only 15% of respondents predict that unfavourable macroeconomic conditions will persist over the next three years in Africa. However, with cybercrime and economic concerns on the rise, financial institutions in Togo must prioritize cybersecurity measures to protect themselves from potential threats.

Key Takeaways

97% of respondents consider cybercrime a significant threat to the finance industry in Togo
Macroeconomic conditions, political instability, and security risks also pose major threats
Cybersecurity incidents have resulted in significant financial losses across Africa
Collaboration and data sharing are on the rise to combat fraud
Regulatory framework needs improvement
Economic outlook remains a concern for financial institutions in Togo