African ICT Law and Policy (Law/Technology/Policy crossover) | 11 November 2003
Cybersecurity Protocols for Financial Systems in East Africa: An Analysis
M, p, h, o, M, o, t, s, h, e, k, o, e, ,, S, i, p, h, o, K, h, u, m, a, l, o, ,, N, o, m, s, a, M, a, s, e, k, o
Abstract
Cybersecurity threats to financial systems are increasing globally, including in East Africa where cyber-attacks on banking and other financial institutions have grown significantly. The research employs a systematic review of existing cybersecurity policies, industry reports, and academic studies from the last five years, focusing on South African financial institutions to identify common threats and propose tailored mitigation measures. A thematic analysis revealed that malware attacks are the most prevalent threat in financial systems across East Africa, with an estimated $50 million annual loss attributed to such incidents. The findings suggest a significant gap between current cybersecurity protocols and emerging cyber risks. Current protocols need immediate upgrading to address the evolving nature of cyber threats, particularly focusing on enhanced detection mechanisms and employee training programmes. Financial institutions in East Africa should implement real-time threat monitoring systems and invest in regular staff training programmes to improve their cybersecurity posture against emerging risks. Model estimation used $\hat{\theta}=argmin<em>{\theta}\sum</em>i\ell(y<em>i,f</em>\theta(x<em>i))+\lambda\lVert\theta\rVert</em>2^2$, with performance evaluated using out-of-sample error.