Corporate News
Hackers unleash cash transfer software
IT security experts said the latest bank fraud software has unique capabilities such as the ability to squat in a local computer and stealing money from a local bank for transfer to a foreign bank account without leaving a trace. Photo/PHOTOS.COM
Posted Thursday, June 21 2012 at 20:15
In Summary
The software is expected to significantly increase the level of cyber-theft or computer-related fraud in markets such as Kenya where online fraud has been growing steadily and commercial banks are estimated to lose Sh3 billion to smart thieves every year.
Last year, Deloitte East Africa released a report indicating that the majority of East African firms are not compliant with international standards for electronic payments exposing them to high levels of ATM-related robberies and fraud cases.
Another survey by PricewaterCoopers (PwC) Global Economic crime survey found that countries such as Kenya, South Africa and UK had recorded a 40 per cent increase in fraud cases in 2011 threatening the drive towards a cashless economy.
Latest Central Bank of Kenya (CBK) data shows that the value of plastic card transactions in Kenya jumped 40 per cent to Sh214 billion in the first three months of 2012, despite rising insecurity and fraud cases.
The CBK data indicates that the number of cards in circulation rose to 9.6 million in March 2012 up from 8.2 million in March 2011, benefiting from a growing middle class in the country that is increasingly using plastic money in place of cash. Debit cards were the most popular among consumers accounting for about 82 per cent of transacted values.
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