Cybercrime has long posed a significant risk for financial stability in African countries given limited capacity and attention to managing cyber risk.
In 2018, the South African Banking Risk Information Centre (a non-profit company formed by the four major banks to combat organised bank-related crimes) reported that cybercrime in the financial sector accounted for losses amounting to R2.2 billion (US$115.5 million) in South Africa every year.
In ensuring continuity of financial services during the COVID-19 pandemic, banks have now opted to shift to digital channels and/or electronic platforms to reduce in-bank services, further exposing the financial sector to cyber risks.
For African countries with limited cyber risk controls, cyber strategies and frameworks to comprehensively map and actively manage their IT system architecture are critical in mitigating cybercrime.
Cyber risk concerns should occupy the minds of the financial sector and regulators in the region as they work towards enhancing and maintaining financial stability in the midst of the COVID-19 pandemic.
