Financial Institutions in Guadeloupe Cry Foul Over Cybersecurity Threats, Economic Concerns Loom Large

For the second year running, executives at financial institutions in Africa have identified cybersecurity concerns as their top risk factor. According to the latest African Financial Industry Barometer survey, a staggering 74% of respondents believe that regulatory improvements are needed to address this pressing issue.

Cybersecurity Concerns Reach Crisis Point

The 2023 report reveals that an overwhelming 97% of surveyed leaders at top financial institutions consider cybercrime a significant threat. This concern is ranked alongside macroeconomic conditions and political and social instability as major worries. The spate of military coups and internecine conflicts across the continent has undoubtedly contributed to these worries.

Financial Losses Due to Cybersecurity Incidents

Across Africa, cybersecurity incidents result in losses estimated between $3.5 billion and $4 billion annually. A recent incident involving a dark web forum offering leaked data containing customer information from 43 Nigerian banks has raised alarm bells among financial institutions.

Recent Cybersecurity Incident Highlights Concerns

David Sennaike, a Nigerian cybersecurity professional, discovered a post on the Breached.co forum claiming to have accessed sensitive information, including bank verification numbers (BVNs) and login details of employees.
The dataset was reportedly being sold for $250,000 on the dark web forum.

Major Banks and Fintechs Fall Victim to Cyber Attacks

Several major banks and fintechs in Nigeria have fallen victim to cyber attacks or fraud incidents over the past year, including: + MTN, which lost a staggering $53 million from its mobile money service. + Flutterwave, another prominent fintech, has also been implicated in several alleged attacks.

In response to these concerns, a group of financial institutions has formed Project Radar, aimed at sharing data and combating fraud. The trend towards increased data sharing is also evident, with: + 50% of surveyed institutions willing to share incident risk data. + 42% sharing fraud data.

Economic Concerns Weigh Heavily

However, only 15% of surveyed leaders believe that cybersecurity regulations in Africa are effective, with a majority calling for improvement. Economic concerns are also weighing heavily on the minds of financial institution executives, as declining economic fortunes threaten to impact growth and profitability.

Optimism Despite Challenges

Despite these challenges, banks, insurance firms, and other financial institutions remain optimistic about their business prospects, with only 15% predicting that unfavourable macroeconomic conditions will persist over the next three years in Africa.