The latest financial sector stability report— by financial regulators including the Central Bank of Kenya and Sacco Societies Regulatory Authority — shows that the losses came on the back of increased use of technologies such as mobile banking.
The losses, an equivalent of Sh6.23 million per month or Sh208,000 daily, should serve as a wake-up call for saccos to invest in strong IT systems.
The revelation that saccos lost Sh106 million to cyber criminals in 17 months due to weak system controls calls for the cooperative movement to invest more in protecting customers’ money.
The latest financial sector stability report— by financial regulators including the Central Bank of Kenya and Sacco Societies Regulatory Authority — shows that the losses came on the back of increased use of technologies such as mobile banking.
The losses, an equivalent of Sh6.23 million per month or Sh208,000 daily, should serve as a wake-up call for saccos to invest in strong IT systems.
While many saccos many cite limited resources as a stumbling block, they should remember that cyber-attacks pose a grave risk of bringing down the cooperative movement that hold more than Sh800 billion customer deposits.
Saccos must heed regulators’ advice to review and enhance their IT security, including their contracts with vendors so as to lower the risks of losing money especially as digital transactions rise. The cooperative movement should also enhance due diligence when onboarding service provides such as suppliers of IT systems.
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