The Increasing Cybersecurity Attacks in Africa

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Published on: August 3, 2024

The African continent is growing at a rapid pace. A big part of this growth is in the digital sphere. Fintechs, e-commerce, and digital transformation are high-growth spaces in Africa today. However, this digital growth is happening more rapidly than the development of laws and regulations for cybersecurity.

This places businesses at risk across the continent, as they are easy targets for hackers. The continent has witnessed a surge in cyber attacks, particularly targeting financial institutions. The repercussions are profound, ranging from financial losses to compromised customer trust and regulatory penalties.

Let us start by looking at some businesses affected by the rising cyberattacks across Africa.

The Rising Tide of Cyber Attacks

Nigeria: Flutterwave’s Ordeal

Nigeria, Africa's largest economy, has not been immune to cyber threats. Flutterwave, a prominent fintech company, has endured three major cyber attacks in the past two years.

These breaches resulted in losses amounting to millions of dollars. In fact, according to Techcabal, one month after obtaining a court order to recover $24 million lost to unauthorized POS transactions, Flutterwave suffered another security breach that allowed unknown persons to divert billions of naira to several bank accounts.

South Africa: A Wave of Cybersecurity Breaches

South Africa has also seen a surge in cyber attacks. Customers of Standard Bank recently reported a security breach that led to numerous fraudulent transactions. The South African Reserve Bank, the nation's apex bank, faced attacks in 2022. These incidents highlight the banking sector's vulnerabilities, exposing financial institutions and their customers to significant risks.

Kenya: Growing Cyber Threats

Kenya, with its rapidly expanding digital economy, has also experienced significant cyber attacks. Major financial institutions like KCB Group and Equity Bank have faced notable cyber incidents. In 2022, Equity Bank reported a cyber attack that resulted in unauthorized access to customer accounts, leading to financial losses and a temporary disruption of services.

KCB Group, another leading financial institution in Kenya, encountered a cyber attack in late 2023 that targeted its online banking platform. Hackers exploited weaknesses in the system, resulting in fraudulent transactions and unauthorized fund transfers.

Lesotho and Angola: Emerging Targets

Banks in Lesotho and Angola have not been spared either. While these countries may not command the same economic clout as Nigeria or South Africa, they have become attractive targets for cybercriminals. The increasing connectivity and digitization of financial services in these nations have opened new avenues for cyber attacks.