Savings and credit co-operative societies (SACCOs) lost Sh106 million to cyber theft. In a story reported by the Business Daily Newspaper, the loss is attributed to the increased use of digital channels such as mobile banking services by both the SACCOs and their members.
This news warrants concern from every stakeholder in the SACCO sector. We need to ensure that our SACCO management systems are secure. This will help to safeguard the SACCOs’ as well as members’ investments. SACCOs should also regularly audit the performance of their systems in order to gauge their efficiency and reliability.
The latest Financial Sector Report by the Central Bank of Kenya has recommended that all SACCOs should review and and enhance their IT security including their service level agreements to ensure that affected SACCOs are compensated by the vendor in the event of an attack where the vendor is culpable.
This comes on the back of a report released by cybersecurity consulting firm Serianu. The report revealed that 21 percent of SACCOs never carry out cybersecurity audits while 48 percent do so once a year, leaving them unaware of weaknesses on their network.