Uzbekistan Faces Cyber Threat as President Warns of Fintech Security Loopholes

President Shavkat Mirziyoyev has sounded the alarm over a surge in cybercrime in Uzbekistan, with nearly 5,500 online crimes reported in the past eleven months. The majority of these incidents involved fraud and theft of funds from bank cards, highlighting the urgent need for improved cybersecurity measures.

Digitalization Efforts Face Security Challenges

The president’s warning comes as the country continues to push forward with its digitalization efforts, with a focus on reducing costs and increasing efficiency across various sectors. However, the rapid growth of fintech services in Uzbekistan has also brought new challenges, including security concerns.

• Fintech Services Under Scrutiny: With nearly 50 payment services currently operating in the country, President Mirziyoyev has instructed officials to formulate uniform requirements for fintech services and ensure their implementation.
• Security Standards Not Met: The president noted that not all of these services meet the required security standards, posing a significant threat to the country’s financial sector.

Cybersecurity Threats Loom Large

The cybersecurity threat is particularly concerning given the significant investment being made in digital infrastructure development. Despite plans to increase internet speeds in regional areas, many IT park residents have reported a decrease in connectivity speed, highlighting the need for robust security measures to protect against cyber attacks.

Unbalanced Modernization Efforts

The president’s meeting on the development of the IT industry also highlighted the uneven pace of modernization across different sectors. For example:

• Alcohol Producers Lag Behind: 42 out of 59 alcohol producers have yet to implement online product accounting systems, leading to issues with excise tax collection.
• Delays in Digital Control Systems: The launch of digital control systems for gas stations, pesticide sales and use, and online document flow in key government agencies has been delayed.

Urgent Action Required

In addition to fintech security concerns, President Mirziyoyev emphasized the need for urgent action to address these issues and ensure the continued growth and development of Uzbekistan’s IT industry. As the country moves forward with its digitalization plans, it is clear that cybersecurity will be a top priority.

Immediate Action Needed

With the threat of cybercrime on the rise, it is essential that fintech services and other online platforms take immediate action to improve their security measures and protect against potential threats. The future of Uzbekistan’s IT industry depends on it.