By Abdi Ali
Published September 28, 2019
As Africa’s financial technology (Fintech) ecosystem surges in a yet to be regulated environment that also lacks proper cybersecurity, cybercriminals are finding it easy to steal from financial institutions.
Kaspersky, a company that specialises in cybersecurity says criminals are targeting Africa’s emerging Fintech space that has over the past two years registered a whopping 60% growth, with US$132.8 million being raised in 2018 alone.
RELATED: Partnership to Tighten African Cybersecurity Announced
“Most Fintech companies do not have proper defences in place to protect their services and their users against a data breach and the unregulated market doesn’t make it easier,” says Bethwel Opil, Enterprise Sales Manager at Kaspersky in Africa. “We are also now seeing cybercriminals demanding ransoms in cryptocurrency given the anonymity of the market and the fact that there is little chance of being tracked. As a result, security education, awareness and ensuring that it is seen as a priority is critical as the Fintech market grows.”
RELATED: Hotel Chain to Double Footprint in Africa
Calling upon operators and consumers to be more vigilant, Opil says “if something looks suspicious in any way, do not make the payment or investment.” He says that consumers who are using mobile cryptocurrency as an investment or payment method should also ensure that they verify the wallet’s address.
“Don’t just follow links; double check everything before sending the transaction and make sure you use a high-quality security solution to safeguard the devices you use,” he cautions.
RELATED: Principles for Reaping Aviation Benefits Outlined
There is little doubt that the Fintech market in Africa will continue to grow, providing high growth potential and opportunities for investments, while simultaneously addressing the need for financial inclusion, Opil notes.
The development of mobile technology may have paved the way for Africa’s Fintech revolution where South Africa, Nigeria and Kenya account for 65.2% of Africa’s Fintech startups.
RELATED: Africa’s Brightest Tech Talent to be Showcased During Inclusive Innovation Challenge
Opil observes that “Operating over the Internet makes Fintechs vulnerable to technological problems and cybercrime and, while mobile payment methods offer a convenience that is hard to debate, the system is suffering a wave of attack. SIM swap fraud is being used to not only steal credentials and capture one-time passwords (OTPs) sent via an SMS, but also to cause financial damage to victims by resetting the accounts and allowing fraudsters to access currency accounts not only in banks, but also in Fintechs and credit unions.”