Cybersecurity Challenges and Mitigation Strategies in East African Financial Systems

Cybersecurity threats in financial systems have escalated globally, particularly affecting East African countries where regulatory frameworks are still developing. A mixed-methods approach combining qualitative interviews with quantitative data analysis was employed to gather insights from stakeholders in Togo, an East African country. Analysis revealed that a significant proportion (65%) of financial service providers experienced cyber-attacks within the last year, necessitating immediate action to fortify their cybersecurity measures. The findings underscore the urgent need for robust regulatory frameworks and continuous technological upgrades in East African financial systems. Strengthened collaboration between regulators, financial institutions, and international bodies is recommended to enhance cybersecurity protocols. cybersecurity, financial systems, Togo, East Africa Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.