International Monetary Fund (IMF) has revealed that 56 percent of central banks or supervisory authorities do not have a national cyber strategy for their financial sectors.

The Washington-based institution said this after surveying 51 countries and putting its findings in a report titled, ‘Mounting cyber threats mean financial firms urgently need better safeguards.’

It said 42 percent of these financial institutions lack dedicated cybersecurity or technology risk-management regulations, and 68 percent do not have a specialised risk unit within their supervision department.

“64 percent do not mandate testing and exercising cyber security measures or providing further guidance. 54 percent lack a dedicated cyber incident reporting regime, and 48 percent do not have cybercrime regulations,” it explained.

The IMF highlighted that cyber attackers persistently target the financial sector. The institution stated, “Due to the tight financial and technological interconnections within the sector, attacks can rapidly spread throughout the system, potentially leading to widespread disruption and loss of confidence. Cybersecurity is, therefore, a significant threat to financial stability.”

In its April 2024 Global Financial Stability Report, the IMF revealed that $12 billion has been lost to cyberattacks in the last twenty years.

The Nigeria Inter-Bank Settlement System recently disclosed that financial institutions lost about N17.67 billion to fraud in 2023.

According to the NIBSS, while the fraud count decreased by six percent to 95,620, the actual loss from fraud increased by 23 percent in 2023 compared to 2022.

In its recommendations to central banks, the IMF added, “The fund’s recommendations include the development of robust national cyber strategies, the implementation of dedicated cybersecurity regulations, and the establishment of specialised risk units within supervisory authorities.”

Committee of Chief Information Security Officers of Nigerian Financial Institutions (CCISONFI) has canvassed more proactive cybersecurity strategies and innovations to address evolving cyber attacks in the financial sector.

Festus Amede, chairman of CCISONFI, who made this call at the 2024 Annual Conference of the Committee held recently in Uyo, Akwa Ibom State, noted that genuine technological advancement was  escalating cyber attacks on businesses and organisations, disrupting and compromising sensitive customer data.

Amede, according to a statement by his media team, however called for more collaboration among relevant stakeholders including research institutions to partner, develop and implement robust and innovative cybersecurity solutions to check cyber criminals.

He appreciated the Central Bank of Nigeria (CBN) for consistently supporting the fight against cybercrime and the risks it poses on the financial sector.

Amede said harnessing and integrating cutting edge technologies such as generative artificial intelligence, machine learning, Quantum Scale cryptography, zero trust security, biometrics, behavioural analytics and cloud security, would help build a safer financial ecosystem and adapt to unforeseen threats of the future.

He said CCISONFI was an annual engagement with seasoned experts in the cybersecurity space to guide members on how to drive cyber resilience in the age of emerging technologies.

In one of the presentations  at the conference entitled ; “Insider Threats; Persistence of Hackers and Fraudsters; Michael Crouse, who is the director, User and Data Protection at Everfox (a Cybersecurity Solution Provider) said organisations must strive to understand the behaviour of their employees as a way of safeguarding any cyber threats from the inside.

He noted that Everfox has been defending the world’s most critical data and networks against complex cyber threats for more than 25 years.

Crouse urged businesses and organisations to inculcate in their employees their values and why they must be part of the solutions and on the other hand, the company must appreciate the value of the employee suggestions and solutions to the problem.

He advised companies to put in place processes aimed at improving a seamless communication from top to bottom highlighting the effects of insider threats to the company and how their actions can curb such threats.

The Insider Threat Expert also called on organisations to support troubled and frustrated employees to avoid being threats to the company by divulging critical information to hackers and fraudsters.

He disclosed that their suite of cross domain, threat protection and insider risk solutions empower governments and enterprise organisations to use data safely where and however their people need it.

Access Holdings PLC, a leading financial services group, has echoed the need for ethical considerations in using Artificial Intelligence (AI), calling stakeholders in the financial industry to factor its sustainability implications.

This call to action was driven by a compelling keynote address delivered by Lanre Bamisebi, Executive Director of IT & Digitalisation at Access Holdings, at the Smart Banking Summit 2024 held in Kenya on Wednesday.

Speaking on the topic, “AI Guardians: Securing Compliance and Mitigating Risks,” Bamisebi’s keynote shed light on the imperative to strike a balance between innovation and responsibility as the banking sector and broader society embrace AI’s transformative potential.

“Artificial Intelligence has the power to revolutionise our societies. Over the years, this has become increasingly evident, offering unprecedented opportunities for growth, efficiency, and innovation. From enhancing customer service to optimising risk management, AI’s potential benefits in finance are vast.

However, as we embrace AI, we must also ensure that its deployment is ethical, secure, and compliant with regulatory standards to mitigate risks effectively,” he said.

As the transformative power of AI continues to fuel innovation, concerns remain about its negative impact on the environment. According to OpenAI researchers, since 2012, the amount of computing power required to train cutting-edge AI models has doubled every 3.4 months.

They also posit that by 2040, the emissions from the Information and Communications Technology (ICT) industry will reach 14 per cent of the global emissions, with the bulk of those emissions coming from ICT infrastructure, particularly data centres and communication networks.

Speaking to these concerns, Bamisebi said, “The exponential growth of AI adoption must be met with thoughtful consideration for its environmental footprint. As we harness the power of AI, we must prioritise sustainable practices to mitigate its energy consumption and carbon emissions, ensuring a harmonious coexistence between technological advancement and environmental preservation.

“We must embrace our roles as guardians, and place comprehensive regulatory frameworks, ethical standards, and continuous learning at the fore of our considerations so that we create a future that is safe, inclusive, and prosperous for all,” Bamisebi charged.

Themed ‘Navigating the Next: Africa’s Leap into Smart, Secure, and Inclusive Banking’, the summit was a pivotal gathering of leaders spearheading the digital evolution in the African banking and finance space.

Other contributors at the summit include Winnie Kaaka, Head of Product and Digital Banking, Access Bank Plc; Harry Hare, Co-Founder and Chairman, dx5; Moses Okundi, CIO/CTO, Absa; Tim Theuri, CISO, Safaricom/M-Pesa Africa; Daniel Adaramola, CISO, SunTrust Bank Nigeria Ltd; Steve Njenga, Founder and CEO, Metis Technology Solutions Ltd, and more.