Financial Crime World

Cybersecurity Threats to Financial Crimes in Gabon: A Growing Concern

The Impact of Cyberattacks on Businesses

The Fourth Industrial Revolution has brought about significant changes in the global business ecosystem, with new technologies and interconnected systems increasing the exposure to cyberattacks. In 2017, the average cost of cybercrime for businesses globally increased by 22.7 percent, reaching an average of $11.7 million.

Vulnerability of African Businesses

African businesses are particularly vulnerable due to limited communications infrastructure and low commitment to cybersecurity. This has resulted in significant financial losses and reputational damage for companies that have fallen victim to cyberattacks.

Case Study: BGFI Prepaid Card Service

In Gabon, the BGFI experienced a massive fraud of over $2.8 million on its prepaid card service, which the company reimbursed. Ransomware attacks can also cause loss of productivity, as companies may have to shut down systems to stop the spread of malicious code.

Financial Losses and Reputational Damage

Cyberattacks can lead to financial losses, including production stop costs, penalties, legal costs, and compensation. In 2017, Nigeria estimated annual losses from cybercrime at $649 million, followed by Kenya at $210 million. The top three impacted industries in Africa are financial institutions, government, and e-commerce.

Prosecution, Penalties, and Fees

Prosecution, penalties, and associated fees can also be a significant concern for companies that experience data breaches or cyberattacks. In South Africa, the Information Regulatory Authority is investigating the cause of a massive data leak in 2017, which compromised the personal data of over 60 million people.

Theft of Intellectual Property and Sensitive Information

The theft of intellectual property and sensitive information is another risk faced by companies in new technologies, advanced services, media, and software development. A loss of classified data can compromise years of labor and research, and this problem is particularly acute in Africa due to the lack of alignment with international standards.

Reputation at Risk

Reputation is also at risk as cyberattacks expose companies to media and public scrutiny, causing damage to image with customers, employees, investors, and partners. Companies must be prepared to proactively manage crisis communication and inform stakeholders on a timely basis to preserve their consumer relationships and reputation.

Recommendations for Safeguarding Against Cyber Threats

To mitigate the risks of cyber threats to financial crimes in Gabon, we recommend the following strategies:

1. Establish a Cybersecurity Agency

  • The Gabonese government should establish a cybersecurity agency to monitor and respond to cyber threats.
  • This agency should have the necessary resources and expertise to detect and prevent cyberattacks.

2. Implement Robust Cybersecurity Measures

  • Businesses in Gabon should implement robust cybersecurity measures such as firewalls, encryption, and regular software updates.
  • These measures will help protect against unauthorized access to sensitive data and prevent malware attacks.

3. Educate Employees on Cybersecurity Best Practices

  • Employees should be educated on cybersecurity best practices and phishing attacks.
  • This will help employees recognize potential threats and take appropriate action to prevent cyberattacks.

4. Integrate Cybersecurity into Decision-Making Processes

  • Companies should integrate cybersecurity into their decision-making processes at all levels of management.
  • This will ensure that cybersecurity is considered when making strategic decisions and investments.

5. Provide Incentives for Businesses to Invest in Cybersecurity Measures

  • The government should provide incentives for businesses to invest in cybersecurity measures.
  • This could include tax breaks, grants, or other forms of support to encourage businesses to prioritize cybersecurity.

By implementing these strategies, Gabon can reduce the risk of cyber threats to financial crimes and create a safer and more secure environment for businesses and individuals.