Cybersecurity threats to financial systems are on the rise globally, with East Africa facing unique challenges due to its geographic and socio-economic conditions. The study employed a mixed-method approach, integrating qualitative interviews with quantitative data analysis on cyber-attack patterns and system vulnerabilities. Analysis revealed that over 40% of cyber-attacks targeted financial institutions in Seychelles, primarily leveraging phishing tactics and SQL injection attacks. The average time to detect breaches was approximately 24 hours. Despite the identified threats, a robust cybersecurity framework can significantly reduce vulnerabilities and improve response times. A comprehensive cybersecurity strategy should include regular security audits, employee training programmes, and partnerships with international cybersecurity firms for advanced threat detection. 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.