Cybersecurity challenges for banks in Africa

According to Business Africa, as of 2023, Africa has emerged as the most targeted region globally for cyberattacks per organization per week. Yet, many financial institutions remain inadequately prepared to combat these escalating threats.

The rapid growth of the Internet and emerging technologies has created exciting opportunities—but also introduced serious vulnerabilities. Cyber attackers capitalize on the continent's relatively low cybersecurity awareness and limited cyberinfrastructure to target banks and their customers. Phishing, ransomware, malware-as-a-service… the methods are varied and increasingly sophisticated, posing a serious threat to the financial sector.

It is, therefore, essential for banks to strengthen their stance on cybersecurity. But what are the main threats? Why are financial institutions such attractive targets? And most importantly, what strategies and solutions exist to protect banks and their clients ?

A Financial Sector Under Pressure

Africa is undergoing a digital revolution, with online activity increasing rapidly. According to the International Telecommunication Union, the continent could reach 1.1 billion Internet users by 2029—up from only 181 million in 2014. This surge in connectivity paves the way for innovation, particularly in financial services. However, it also comes with a sharp rise in cyber risks.

As outlined in the Global Cybersecurity Index 2024, Africa still trails behind in cybersecurity preparedness. Several factors explain this gap:

First, the growing number of users significantly expands the attack surface. Unfortunately, many users are unaware of online threats, leaving a large segment of the population vulnerable to scams and data breaches.

At the organizational level, Business Africa notes that nearly 90% of businesses are ill-equipped and lack solid protocols and systems, making them prime targets.

Second, the continent's digital landscape is fragmented—the digital divide between countries in terms of developing and prioritizing cybersecurity. In many less developed or politically unstable nations, digital security often takes a back seat.

Finally, while large-scale efforts like the 2023 Regional Cybersecurity Treaty show promise, incomplete adoption hinders a united, continent-wide response to cyber threats.

The Banking Sector: A Prime Target

Given these conditions, the financial sector is among the most exposed to cyber threats. The digitization of banking services, the high value of financial data, and the growth of online transactions make African banks particularly appealing to hackers.

Financial institutions face a wide range of cyberattacks. According to Interpol's March 2023 Cyber Threats in Africa report, common threats include:

• False Transfer Order Fraud (FTOF): Gaining unauthorized access to a bank's account and sending deceptive messages containing malware-laced files or phishing links to capture confidential data.

• Phishing: Deceptive emails or SMS messages designed to trick recipients into disclosing login details or downloading harmful software.

• Ransomware: Malicious programs that encrypt crucial banking information, demanding ransom payments for decryption. Some attacks can paralyze operations entirely.

• Trojans: Stealthy software that secretly captures sensitive information, often running undetected.

• Malware-as-a-service: A growing trend where cybercriminals offer turnkey attack tools, enabling even unskilled individuals to launch sophisticated assaults.

Securing Banks in Africa: What Are the Solutions?

Banks must adopt a robust, multi-layered cybersecurity strategy to combat the rise in attacks. The objectives are twofold: minimize risk exposure and enhance the ability to respond effectively to incidents.

Employee Awareness: A First Line of Defense

Human error remains the most common entry point for cyber-attacks: clicking suspicious links, using weak passwords, or rushing to download unknown files. Empowering employees through training is one of the most effective defenses.
This includes ongoing education about evolving threats, regular simulations to test reactions, and adopting best practices—like never sharing login credentials, reporting suspicious emails, and securing work devices.

Use Universal Best Practices

While achieving ISO 27001 certification demands significant investment and effort, it offers a solid foundation for structured cybersecurity improvement:

• Conduct comprehensive risk assessments to identify and prioritize potential vulnerabilities.
• Define clear, actionable security policies covering access controls, backups, data, handling, and encryption.
• Gradually apply specific requirements, integrating essential practices.

Secure Core Banking: The Key to Protection

Core banking systems are at the heart of financial operations, overseeing accounts, transactions, and sensitive data. If compromised, the impact can be devastating.

In addition to employee training and good security practices, secure core banking considerably reduces the attack surface and prevents ill-intentioned individuals from accessing critical data. It allows advanced security protocols and avoids loopholes linked to obsolete systems.

Today's attacks are increasingly sophisticated and opportunistic, so choosing a core banking solution should not be taken lightly.

Skaleet: a secure Core Banking Solution meeting the highest standards

Skaleet positions itself alongside banks as a key partner, offering a SaaS Core Banking Solution designed to meet the highest security standards.

Skaleet is ISO 27001 certified, demonstrating our commitment to protecting our customers' data. All our teams are mobilized to guarantee information security, confidentiality, and integrity.

Skaleet Core Banking is subject to European standards, ensuring a rigorous and robust cybersecurity framework.

As a French solution, Skaleet can draw on the recommendations of ANSSI and benefit from its support, as well as that of the European Threat Intelligence network and an ecosystem of partners.

Choosing Skaleet means opting for proven technology that complies with international best practices. Would you like to find out more? Contact us.