News

East African telecoms, ATM networks vulnerable to data hacking

April 5, 2012

Some African companies may not be keeping up with the latest IT security for their data systems, which could be an invitation to cybercriminals to mine ATM and telecom networks for customers' banking information, said an article at allafrica.com.

A study last year by Deloitte & Touche said that 60 percent of East African banks are susceptible to security breaches due to lack of sophisticated IT systems, and that these breaches cost the region $245 million per year. At a recent cyber security conference in Kigali, Rwanda, it was revealed that cyber crime is rising by $3 million monthly, the article said.

To compound the problem, banks and telecom providers lack standard compensation guidelines for customers whose money is stolen as a result of a cyber-attack, which leaves customers exposed to serious losses. MTN Rwanda's Head of Mobile Money Albert Kinuma told All Africa that if a consumer experienced financial loss from a hacking, compensation would depend on the situation in which the attack happened.

The article said that, neither Rwanda's National Bank nor the consumer rights organization ADECOR were aware of any laws that ensured compensation for losses, and the issue was never addressed at the Kigali cyber security conference. 

For more on this topic, visit our security research center.