Why Financial Institutions are being hit hard by Cyber Criminals 0 906

  • Kenyan bank accounts are at risk. Kenya lost about $175million last year to cyber crime.
  • The Serianu 2016 Kenya Cyber security Report, which highlighted that about 44% of financial institutions run on a cyber security budget of $1-1,000 annually.
  • With the increased terrorist activities within Kenya, the Internet presents national enemies such as the Al-Shabaab and other extremist groups with a unique and ubiquitous opportunities.
  • There is no existing comprehensive data protection regulation in the jurisdiction of Kenya.
Why Financial Institutions are being hit hard by cybercriminals

Kenya has been widely celebrated as one of the foremost innovators around the question of financial inclusion. With the acclaim of being the leading nation in the adoption and use of mobile banking platforms such as M-PESA and Equitel, numerous fintech start-ups are opening office in the Silicon Savannah.

In Kenya, the effect of innovation by fintech companies has been brilliantly positive. Per a 2016 Finaccess Household Survey endorsed by the Central Bank of Kenya and the Kenya National Bureau of Statistics, the number of Kenyans formally included by the financial system has grown by 50% in the last ten years.

More than 75.3% of Kenyans are formally banked

Over three-quarters (75.3%) of Kenyans are now formally included, up from 66.8% in 2013. Financial exclusion, which is now down to 17.4%, has more than halved since 2006.

Cyber crime on the rise:

There is no simple way to say this. Kenyan bank accounts are at risk.

The latter statement has been evidenced by the statistics present in the recent Cyber security Report published by Serianu, which asserts that Kenya lost about $175million last year.

Moreover, the Report managed to establish that cyber criminals are deliberately targeting the Kenyan digital economy with the intention of wreaking havoc and making away with millions.

Essentially, in terms of cyber resilience, the Kenyan digital economy can be likened to a slow, plump gazelle stumbling through the “cyber-savannah” in the full view of agile, informed and hungry cyber-predators who have begun to sink their teeth into their sumptuous prize.

Cybersecurity is a budgetary concern

With more than 75.3% of Kenyan citizens formally included in financial services, one would logically expect a correspondent increase in cyber security investments in the financial services sector.

Notably, the Serianu 2016 Kenya Cyber security Report, which highlighted that about 44% of financial institutions run on a cyber security budget of $1-1,000 annually, whilst about 33% of financial institutions in Kenya have $0 spend on all matters cyber security.

44% of financial institutions run on a cyber security budget of $1-1,000 annually Click to Tweet

Effective infrastructural cybersecurity measures come at a budgetary cost which must be respected by C-Suite executives. The threat landscape is constantly evolving as hackers collectively invest in their own expertise and tools to hack siloed

Financial organisations should staff more cyber security specialists

Notably, 63% of financial organisations in Kenya have an in-house cybersecurity department. However, only 29% of the employees within in-house cybersecurity departments in financial organisations are security certificate holders.

Financial organisations such as banks and fintech companies should ensure that their customers’ data is under the watch of certified cyber security professionals who can:

  • Promptly update their security infrastructure to match threat trends,
  • Clearly communicate the organisation’s cyber security needs to Board Executives,
  • Collaborate with digital product creators to ensure that their consumers enjoy safer technology,
  • Train other employees in online hygiene as a safety net against social engineering,
  • Swiftly respond to hacking incidences to mitigate losses and collect forensic data for litigation support.

Certified security specialists are a key asset for any financial organisation, as they not only guarantee their organisations’ business continuity by perpetuating trust and reliability of financial products, but also as business enablers who can assist in ensuring that there is security by design in the creation of new financial products.

Immature Data Protection Regulation:

There is no existing comprehensive data protection regulation in the jurisdiction of Kenya. This is in vast contrast to other thriving digital economies such as South Africa, states within the European Union and Canada.

One of the impactful consequences of poor data protection is the immensely secretive way through the occurrence of breaches is treated.

Financial institutions are not necessitated by any law to proactively inform the public regarding any substantial data breaches that have occurred to the detriment of their consumers.

This contrasts with the impending General Dara Protection Regulation in Europe, the Protection of Personal Information Act of South Africa and the Digital Privacy Act (whose adoption introduced mandatory notification via an amendment in the Personal Information Protection and Electronic Documents Act) who urge that any data breach that may result in a risk to the rights and freedoms of individuals should be reported to the relevant supervisory authority.

If unaddressed such breaches can have significant detrimental effect on individuals, i.e, discrimination, damage to reputation, financial loss, loss of confidentiality or any other significant economic or social disadvantage.

Under the Constitution of Kenya 2010, Kenyans’ consumer rights as well as the right to privacy has been asserted as a fundamental right that should be protected by the full legislative might of the Government.

Innovative legislators should get to work to protect the economy of the Republic of Kenya.

Conclusion

Large banks, microfinance institutions even cutting-edge fintech firms have been taking hooks to the jaw thrown by hungry cyber criminals who can see the vulnerabilities present within Kenya’s financial ecosystem.

The reputational harm to the financial sector has been immense as confidence in new, innovative financial products continues to decline sharply.

The finance market runs on the foundational principal of user trust. If financial institutions in Kenya do not champion the cyber security agenda, share threat intelligence to develop a fresh, synergised approach to cybercriminals, those heavy blows to their infrastructure will continue to wreak havoc to their stellar brands.

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Safer Internet Day 2019 0 205

Working together with your children for a better online experience

Beginning in 2004, Safer Internet Day has grown to become one of the landmark events in the online safety calendar. And this year’s theme, ‘Together for a better internet’, encapsulates a lot of the discussion we are seeing around online safety and cybersecurity. The topic is too complex a minefield for any of us to bear sole responsibility and, like all good things in life, we need to work together to bring about the best possible future.

What does it mean to work together where online safety is concerned? It could be an IT security company working closely with a consultation of parents to develop products, or parents and teachers working to ensure the online education of our young people. But what about children themselves? We put a lot of onus on finding the right solutions and products to protect our kids online, but one day those kids will grow up and live without online parental control. We should think about the best way to prepare them; ‘together for a better internet’ should mean working with our children to educate, inform and protect them, so they can stand the best possible change of making the right decisions for themselves.

That’s not to say that software doesn’t play a crucial role, and ESET would encourage all parents to take care over choosing the right parental control software on the family computer. When you are doing this though, we advise you do it together with your kids. Talk them through the programmes you’re installing and select your privacy settings together, discussing why you are doing it and the kinds of threats you’re protecting the family against. As part of this conversation you can talk to your children about what they’re doing online, who they’re talking to and what kinds of things they need to be careful about in day to day online. Many kids see control settings on the internet as a block to them having fun; what they need is someone to explain their function and reasoning. By having this discussion, you’re giving your kids an element of control and responsibility over their online activities which, when paired alongside the rules and software we all need to protect ourselves, should produce better results when it comes to their internet education.

The internet is such an integral part of our lives that the earlier you start talking to kids, involving them and teaching them about their online worlds, the better the results. Creating an open dialogue will always be more effective than just putting your foot down.

Set an example; whatever you expect your kids to do, make sure you are also doing. The online world represents dangers for all of us and we can all benefit from a few more precautions. If you’re asking your kids to cover their webcam when they’re not using it, then make sure you also do it. If you’re restricting their screen time, then think about setting yourself some boundaries as well. With the damaging effects of too many screens on our health and wellbeing, it’s unlikely to have any negative repercussions.

ESET’s software, such as its ESET Parental Control, places a large emphasis on parents and children working together. It helps them to navigate online, manage what apps and websites they use, and decide – together – what’s good for them. One of the key features is age-based filters which helps to manage which apps children can and cannot access, allowing parents to consider the right restrictions for their children and to not just impose a blanket ban. Other features include setting time limits on when children can play on their devices and creating exceptions that kids can request. Parents can even send their children messages which they must acknowledge before they can continue to use their devices.

It’s elements such as these that allow children to be involved in the monitoring of their safety, and truly help parents to work together with their kids for a better internet and the best possible online world.

 

Play it safe during FIFA 2018 0 891

We do realize that you’ve been caught up in the hurly-burly of the FIFA World Cup, but surely you have a few minutes to spare and peruse our roster of tips to stay safe online not only during the soccer spectacle. While you’re at it, recognize that no single player, no matter how stellar, is enough to put you on a path to success. In fact, being even one player short can be enough to trip you up. What should the pillars of your cybersecurity game plan be, then?

#1 A stitch in time saves nine

Last year went down in history for two serious cyber-incidents – the WannaCryptoroutbreak and the Equifax hack – that served up powerful reminders of the merits of swiftly squashing security bugs. 2017 also saw the highest number of  vulnerabilities reported.

So the number one player in you security team is updates. In your home settings, making sure that automatic updates are enabled for your operating system and software is an easy step to take to keep attackers away.

 

#2 Prune your team

Get rid of that disgruntled bench-warmer who ends up sapping your team’s morale. Software that you hardly ever use can become a liability simply by increasing your attack surface. To further reduce the possible entry points for cybercriminals, you may also want to disable unused services and ports, and ditch programs that have a track record of vulnerabilities.

For your browser, consider blocking ads and removing all but the most necessary of browser add-ons and plugins. While you’re at it, shut down the accounts that you no longer need and use your high-privilege, or admin, account only for administrative tasks.

#3 Practice strong password hygiene

One of the easiest ways to protect your online identities consists in using a long, strong and unique password or better still, passphrase, for each of your online accounts. It may well come in handy if your login credentials leak, for example due to a breach at your service provider – which, in fact, is far too common a scenario. Further, just as you’d never share your teams tactics with your opponents, you should never share your password with anybody.

If you’re like most people and find the need to remember many username/password combinations overwhelming, consider using a password manager, which is intended to store your passwords in a “vault”.

#4 Look before you leap

Even if you have the most complex of passwords or passphrases, be aware of where you input them.

Online, everything is just a click away, and scammers are keenly aware of that. In their pursuit of your personal information, they use social engineering methods to sucker you into clicking a link or opening a malware-laden attachment.

5 questions to ask yourself before clicking on a link are:

  1. Do you trust the sender of the link?
  2. Do you trust the platform?
  3. Do you trust the destination?
  4. Does the link coincide with a major world event like the FIFA worldcup? (Cyber criminals tend to be opportunistic this way)
  5. Is it a shortened link?

#5 Add a factor

When aiming for secure accounts, you need to up your ante by using two-factor authentication, particularly for accounts that contain Personally Identifiable Information (PII) or other important data. The extra factor will require you to take an extra step to prove your identity when you attempt to log in or conduct a transaction. That way, even if your credentials leak or your password proves inadequate, there is another barrier between your account and the attacker.

#6 Use secure connections

When you connect to the internet, an attacker can sometimes place himself between your device and the connection point. To reduce the risk that such a man-in-the-middle attack will intercept your sensitive data while they are in motion, use only web connections secured by HTTPS (particularly for your most valued accounts) and use trusted networks such as your home connection or mobile data when performing the most sensitive of online operations, such as mobile banking. Needless to say, secure Wi-Fi connections should be underpinned by at least WPA2 encryption (or, ideally, WPA3as soon as it becomes available) – even at home – together with a strong and non-default administrator password and up-to-date firmware on your router.

Be very wary of public Wi-Fi hotspots. If you need to use such a connection, avoid sending personal data or use a reputable virtual private network (VPN) service, which keeps your data private via the use of an encrypted “tunnel”. Once you’re done, log out of your account and turn off Wi-Fi.

#7 Hide behind a firewall

A firewall is one of your key defensive players. Indeed, it is often thought of as the very first line of defense. It can typically be a piece of software in your computer, perhaps as part of anti-malware software, or it can be built into your router – or you can actually use both a network- and a host-based firewall. Regardless of its implementation, a firewall acts as a brawny bouncer that, based on predetermined rules, allows or denies traffic from the internet into an internal network or computer system.

#8 Back up

A backup is the kind of player who doesn’t get much time on the pitch, but when he does get the nod, he can “steal the show”. True, we might have spoken ill of bench warmers earlier, but a reliable backup is definitely not the kind of player to spoil your team’s chemistry.

Your system cannot usually be too – or completely – safe from harm. Beyond a cyber-incident, your data could be compromised by something as unpredictable as a storage medium failure. A backup is an example of a measure that is corrective in nature, but that is fully dependent on how hard you “practiced”. Or, as Benjamin Franklin put it, “by failing to prepare, you are preparing to fail”. It will cost you some time and possibly money to create (time and time again) your backups, but when it comes to averting (data) loss, this player may very well save the day for you.

#9 Select security software

Even if you use your common sense and take all kinds of “behavior-centered” precautions, you need another essential addition to your roster. At a time when you’re pitted against attackers who are ever more skilled, organized and persistent, dedicated security software is one of the easiest and most effective ways to protect your digital assets.

A reliable anti-malware solution uses many and various detection techniques and deploys multiple layers of defense that kick in at different stages of the attack process. That way, you’re provided with multiple opportunities to stymie a threat, including the latest threats, as attackers constantly come up with new malicious tools. This underscores the importance of always downloading the latest updates to your anti-malware software, which ideally are released several times a day. Top-quality security software automates this process, so you needn’t worry about installing the updates.

#10 Mobiles are computers, too!

Much of this article’s guidance also applies to smartphones and tablets. Due to their mobility, however, these devices are more prone to being misplaced or stolen. It is also of little help that users tend to view security software as belonging in the realm of laptops and desktops. But mobile devices have evolved to become powerful handheld computers and attackers have been shifting their focus to them.

There’s a number of measures you can take to reduce risks associated with mobile devices. They include relying on a secure authentication method to unlock your device’s screen, backing up the device, downloading system and app updates as soon as they’re available (preferably automatically, if possible), installing only reputable apps and only from legitimate stores, and making sure to use device encryption if it’s not turned on by default.

A dedicated mobile security solution will also go a long way towards enhancing your protection from mobile threats. This includes a scenario whereby your device goes missing, so you are then able to use the suite’s anti-theft and remote-wipe functionalities.

#11 Be aware

The final team member is, in fact, you – the keeper. Stay vigilant and cyber-aware and educate yourself on safe online habits. Don’t ever say, “it won’t/can’t happen to me”, because everyone is a potential target and victim. Recognize that one click is enough to inflict major damage on yourself and others, and that breaking good security practices for the sake of convenience may come back to bite you worse than Luis Suárez did in 2014. After all, how secure we are is largely dependent on how we use the technology.

So there you have it. You may want to enjoy the soccer now.