Collaboration, investment key to security of digital payments

 

As the digital payments landscape in Africa expands, the need for robust cybersecurity measures becomes increasingly urgent.

Trust and security are foundational to financial services, and as cybercriminals continue to become more aggressive and sophisticated, addressing any vulnerabilities is key to safeguarding the integrity of Africa’s digital financial ecosystem.

In fact, Africa experienced the highest average number of cyberattacks per week per organisation in 2023 with a 23 per cent increase compared to the previous year.

Africa’s digital financial ecosystem is still maturing, and as digital payments become more integrated across countries, regions, and more interoperable across payment platforms, this increasingly complex environment can introduce new cybersecurity vulnerabilities. 

And, as in an interconnected landscape a single weak link can jeopardise the entire network, it is critical that the continent’s financial institutions, governments and decision-makers come together to collectively work towards establishing and maintaining baseline security standards across the industry.

This requires building meaningful partnerships with relevant stakeholders, substantial investment and greater harmonisation of regulations and policies across the continent.Several challenges hinder the attainment of robust cybersecurity in Africa.

One of the primary issues is the lag in regulatory frameworks, while a lack of significant investment in security would lead to vulnerabilities within the continent’s financial sector being exploited.

Fortunately, investment in cybersecurity has seen a notable increase over the past five years, reflecting a growing recognition of its importance. The rise of artificial intelligence (AI) and sophisticated cyber threats has driven firms to allocate more resources towards cybersecurity.

And digital payment networks like Onafriq have strengthened their security posture by investing in intelligent tools that predict and proactively address potential threats.

Despite these advancements, there remains a disparity in investment levels across the continent. Ensuring that all financial institutions can meet necessary security standards requires coordinated efforts and substantial capital.

This includes investing in state-of-the-art technology and continuous monitoring systems to detect and prevent malicious activities.

Additionally, regulators play a crucial role in setting and enforcing security standards. And yet the pace of regulatory development often falls behind the speed of innovation in the fintech space.

Harmonising regulations across different African countries is essential to create a consistent and secure environment for digital payments by adopting best practices and global standards. This is necessary to avoid fragmentation of the digital payments landscape while effective enforcement of these standards is vital to maintaining a secure financial ecosystem. 

A truly secure payments environment requires buy-in from every part of the ecosystem’s value chain, including the end user. Not only must financial institutions adopt a security-first approach, embedding robust security measures into every aspect of their operations, but educating users about security practices is just as crucial. 

Personal information

As digital payments become more prevalent, financial institutions must design products with built-in security features and continuously educate users on safe practices.

This includes secure PIN usage, recognizing phishing attempts, and safeguarding personal information.

For example, Onafriq exemplifies this approach by ensuring that security is a priority from the design stage.

By securing networks, protecting sensitive data, and conducting regular third-party audits, we have been able to maintain a strong security record. This proactive stance is essential for preventing breaches and ensuring customer trust.

More than this, there is a growing need to build the cybersecurity capacity needed to sustain the digital payments landscape. Africa faces a shortage of skilled cybersecurity professionals, which hampers the ability to address emerging threats effectively.

In fact, a cybersecurity assessment conducted by the African Union Commission and the United Nations Development Programme found that African countries had a cybersecurity competence of 0.21 out of 1 with more than 70 per cent of African nations requiring additional cybersecurity infrastructure.

Financial institutions and governments must invest in training programmes, internships, and continuous education to develop a skilled workforce capable of managing cybersecurity challenges. But retaining talent within Africa also remains a significant issue.

Many trained professionals seek opportunities abroad, exacerbating the skills gap.

Addressing this requires creating conducive environments that offer competitive opportunities and career growth within the continent.

Cybersecurity is a cornerstone of Africa’s digital payments landscape.

To achieve a secure and resilient financial sector, Africa must invest in robust cybersecurity infrastructure, foster regulatory harmonisation, and prioritise collaborative efforts among financial institutions.

By addressing these challenges, Africa can build a secure digital payments ecosystem that supports economic growth and instils trust among users.

The writer is the chief technology officer at Onafriq