Cyber crime: EA banks on the receiving end

SECURITY

|
Image: By BiztechAfrica
Cyber crime: EA banks on the receiving end

By Semaj Itosno, Nairobi, Kenya

Banks in East Africa could lose their battle against cyber criminals unless they fix loopholes in the online systems, a new survey by audit firm Deloitte, warns.

The survey shows that East African banks lost USD48.3 million to fraud in the eighteen months ended June 2012.

This is 25% higher than a similar period in two years ago.

But the damage could be grimmer if banks had to reveal all the finer details of the fraud cases they have faced.

According to Deloitte, the USD48.3 million figure is an understatement. Sadly, the survey reveals that about 50% of total fraud was an ‘inside job’ and banking officials were involved.

“The pervasiveness and magnitude of fraud is on the rise. Technology is turning out to be a double-edged sword,” Robert Nyamu, Deloitte’s Forensic Director said.

Another report recently released by an IT security consulting firm, Serianu revealed that cyber criminals were sharing information on security gaps in Kenyan banks and leaking credit card information for as little as USD9.6.

The Serianu report revealed that more than 80% of Kenyan websites are built on open source software such as Wordpress, Joomla, Apache and MySQL whose security codes are available online for free.

According to William Makatiani, the managing director at Serianu Ltd, Government websites and banking institutions remain the most vulnerable targets since most of their website are developed externally but they rarely do a check on their security settings or update them.

“During our research, we came across a credit card shop that was selling credit card data issued by banks located in Kenya,” said Makatiani.

The study was done between the months of January and April this year and lists bank accounts, credit and debit card details as the most looked for data by cyber criminals.

Online fraud has been growing steadily in Kenya and commercial banks are estimated to lose USD36million to cyber criminals annually.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE SECURITY NEWS

Consumers suffering from ‘digital amnesia’

Kaspersky Lab says growing numbers of consumers struggle to recall memories trusted to connected devices. Read More

Information Security: The biggest barrier to the Internet of Things

Trust is critical for IoT to achieve its potential, especially in terms of its adoption by the mass market, says Gemalto. Read More

Kaspersky Lab, Gabonese Government to Cooperate on IT Security

Kaspersky Lab has signed a memorandum of understanding with the National Agency of Digital Infrastructures and Frequencies (ANINF) in Libreville, Gabon.  Read More

The importance of password security

Many users assume their passwords are of no value to cyber criminals, says Kaspersky Lab. Read More

MTN Business expands partnership with Samsung to offer enterprise customers increased security

Samsung Electronics South Africa has announced that MTN Business has been appointed as a reseller of Samsung’s KNOX licenses to its customers.  Read More

Ghanaian to moderate Council of Europe Conference on Cybercrime

A Ghanaian cyber security expert, Albert Antwi-Boasiako, has been selected by the Council of Europe to moderate a session at its Cooperation against Cybercrime - Octopus Conference in Strasbourg, France. Read More

Be on the lookout for new cyber threats, warns Kaspersky

Kaspersky Lab has urged Kenyan companies to put the right security and strategies in place against cybercrime to avid losses and reputational damage.  Read More

Threat of cyberattacks on the rise for African companies

Deloitte says cyber criminals are getting smarter and know no boundaries, so companies in Africa need to raise their preparedness. Read More

Kaspersky Lab, ISA combine efforts to protect critical infrastructure

Kaspersky Lab and the International Society of Automation (ISA) have launched a joint education initiative to raise awareness of industrial automation equipment operators about cyber threats.  Read More

Ransomware: don’t pay the cybercriminals

ESET offers tips on how keep PCs protected and avoid supporting cybercrime activities. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Batswana dragging feet in digital migration Batswana dragging feet in digital migration

More than a month after the deadline for the digital migration from analogue television, few people have shown any pronounced enthusiasm in entering the new digital TV realm. 

IN DEPTH

As curtain falls on MDGs, what next?As curtain falls on MDGs, what next?

Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.

COMPANY NEWS

MTN Business App of the Year submissions closed

Entries for the annual MTN Business App of the Year Awards taking place on 13 August in Johannesburg have closed, and an expert panel of judges that is adjudicating ...