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Kenyan Saccos Suffer KES 106 Million Loss From Cyber Criminals

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Image courtesy People Daily

Cybersecurity across all industries is a conversation that has been sparked over the last few years as organisations continue to suffer from cyber criminals. A recent report on the financial sector stability shows the need for this as cyber theft continues to rise in Kenya.

The report compiled by the Central Bank of Kenya and Sacco Societies Regulatory Authority shows that Savings and credit cooperative societies have lost KES 106 million to cyber theft. This is in the 17 months leading to March this year.

According to the report, the losses were associated with the increased use of digital channels such as mobile banking. Additionally, the losses (equivalent of KES 6.23 million per month) were linked to software vendors engaged by the Saccos. This goes further to highlight the vulnerabilities of a sector that holds over KES 800 billion customer deposits.

As reported by Business Daily, Saccos have now been asked to reinforce stronger control systems and review contracts signed with software vendors. This is that they can compel such dealers to make compensations when such losses occur.

“All saccos must now review and enhance their IT security including their service level agreements to ensure that affected saccos are compensated by the vendor in the event of an attack where the vendor is culpable. Saccos are also encouraged to undertake indemnity covers to safeguard against attacks,” says the report.

This report alongside others now places co-operative societies under pressure to invest in reliable and strong control systems. This is so that they can increase their chances of joining the national payment system without being as susceptible to cyberattacks that clearly need to be fought.

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