Kenya Cyber Security Report 2015

Cyber Security Perspective from the Financial
Services Sector
Wycliffe Momanyi | Chief Information Security Officer, KCB Bank Group

F

inancial transactions are

Conversely, Mobile banking has taken

increasingly administered in

center stage with most financial

real time with minimal human

institutions adopting mobile related

involvement. This is being driven by

services and mobile devices getting

customer demand for faster, more

more powerful every year. Smart phones

Insider fraud is one of the major

efficient, easier and more secure means

available today are capable of carrying out

contributors to cybercrime and a headache

of carrying out their transactions. As

all the functionalities generally done on a

to all Information Risk & Security

a result of the ever increasing roll out

PC. While there are efforts made to ensure

practitioners. The employees are assigned

of technologically driven products, the

that a PC is kept secure, a smart phone

privileged access to systems and thus

financial sector is facing ever-escalating

that does the same functionality does not

it is easier for an insider to carry out a

threats from cyber criminals.

receive similar attention. Mobile devices

cyber-attack as he is already aware of

and mobile service offering have become

all the security devices and procedures

an attractive and easy target for cyber

in place. An attack by an insider is often

criminals owing to the lack of knowledge

more difficult to identify and recover

of users on the potential hazards as a

from, vendors pose the same risk with a

result of for instance the download of a

possibility of more devastating attacks.

While vulnerabilities in software and
network continue to be the target of cyber
attackers and defending these resources
remain the focus of every organisation,
the weakest link continues to be the user/
people. Data breach arising from phishing

malicious software.

From experience it is evident that even the

attacks and social engineering continues

In 2014, J.P. Morgan Chase & Co, the

best preventive solution is bound to have

to be on the rise. Banks have made efforts

largest U.S. bank by assets conceded that

vulnerabilities that attackers can exploit,

towards educating their clients including

unknown attackers stole about 76 million

therefore becomes now whether but

providing information on their Internet

customers’ contact information - including

when an attack will take place and what

banking portal though in the face of a

names, email addresses, phone numbers

measures have we set in place to respond

targeted attack, these efforts are proving

and addresses. These breaches happened

to these attacks.

to be inadequate. Social media provides

to JP Morgan Chase which spends billions

the platform required for an attacker to

of dollars to fund IT budgets and employ

mine information on an individual. This

large teams of security analysts pointing

information is then used to make the user

to the sophistication of these cyber

believe that he is communicating with a

attacks. It is also reported that it took over

legitimate source. With easier access to

a month for JP Morgan to detect that they

social media and the tendency to share

had been hacked, for Kenyan banks it’s a

personal information, the number of

major challenge and one can only guess

users that are exposed to such attacks will

the extent of the problem.

continue to increase.

To address the unintended failures, an
institution is expected to take several steps
such as adoption of Board-approved IT
governance policies, establishing data
centres, third party contracts, robust
service level agreements, IS audit etc.
As far as the risk of unintended failure
is concerned, the IT management policy
framework that has evolved over a period

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