Africa’s financial sector stands at the forefront of a digital revolution, driven by the rapid expansion of fintech and digital banking. This transformative wave has unlocked remarkable opportunities but also heightened exposure to cyber threats, challenging the continent’s readiness to safeguard its systems.
In the race for market dominance, business leaders often prioritise rapid deployment over security, treating cybersecurity as an afterthought. This approach, while tempting, is fraught with risks. Cyberattacks are no longer distant concerns—they are present and escalating. According to the African Cyberthreat Assessment Report 2024 by Interpol, cyberattacks on organisations across Africa surged by 23 percent last year alone. The threats range from AI-powered phishing scams to ransomware attacks, posing severe risks to financial stability, customer trust, and institutional integrity.
The rising tide of cyber threats
The financial sector in Africa’s leading markets is particularly vulnerable. In Nigeria, banking fraud caused losses of $762 million in 2022, marking a sharp rise from $544 million the year prior. Similarly, South Africa experienced a 45 percent increase in fraud incidents in 2023, with banking app fraud comprising 60 percent of digital banking crimes. Egypt, with its burgeoning ICT sector, faces growing cyber risks that demand advanced security measures.
Emerging technologies like generative AI amplify these challenges by enabling sophisticated cyberattacks, such as targeted phishing and ransomware. A report revealed that African organisations faced a higher frequency of weekly ransomware attacks compared to Europe or North America, underscoring the urgency for robust defences.
Balancing speed and security
To address these threats, the financial sector must adopt a dual-pronged approach: shifting security measures left—integrating them early in the development lifecycle—while maintaining vigilance to defend against unforeseen threats. At Deimos, we champion the “shift left” philosophy but also emphasise readiness for breaches when they occur. A balanced strategy combining proactive and reactive security measures is key to resilience.
Five steps to build cyber resilience
A multi-layered cybersecurity framework can help mitigate risks. Here are five actionable steps for financial institutions:
Strengthen security governance
Establish robust governance structures with audit logs and compliance practices to monitor and respond to security breaches effectively.
Promote continuous training
Foster a security-conscious culture by regularly training employees on evolving cyber threats and defence techniques.
Enhance security posture
Conduct routine assessments and update policies to address vulnerabilities proactively, reinforcing defences with patches and system upgrades.
Prioritise vulnerability management.
Focus on high-risk areas through continuous vulnerability assessments to resolve issues before they escalate.
Invest in threat intelligence
Leverage real-time monitoring and intelligence to detect potential threats early and minimise operational disruptions.
Read also: NITDA calls for adaptive, inclusive regulations to boost digital economy
Governance and innovation: A unified approach
While strong governance frameworks are essential, they are insufficient on their own. Regulations often trail behind the pace of technological innovation. Thus, financial institutions must embed cybersecurity into their core operations, going beyond compliance to proactively safeguard their systems.
Securing Africa’s digital finance future
The intersection of fintech innovation and digital banking demands a shift in focus from speed to security. Encouragingly, more organisations are recognising the importance of cybersecurity as a foundational element for sustainable growth. By integrating security into every aspect of their operations, Africa’s financial institutions can protect their systems, maintain customer trust, and unlock inclusive access to digital financial services.
The road ahead requires investment in people, processes, and technology. By fostering a culture of proactive cybersecurity, Africa’s digital financial sector can weather the storm of cyber threats and thrive in a secure, sustainable future.
Jaco Nel is Chief Technology Officer at Deimos. In this role, Jaco is responsible for overseeing the development and cross-functional delivery of Deimos’ software portfolio for Deimos and its clients, providing technical guidance and leadership to engineering teams and top management, implementing best practice engineering methods, and examining new trends and technologies.
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