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Deloitte report predicts cybercrime-linked losses to hit new record in 2017

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Increased use of mobile devices, especially smartphones, is exposing Kenyans to cyber attacks due to users’ weak security measures when connecting to the Internet. PHOTO | FILE

Global financial consulting firm Deloitte has predicted that losses due to cybercrime could hit a new record this year, as criminals take advantage of increased Internet connectivity and users’ lax security measures.

It is estimated that cybercrime cost Kenyan Internet users and businesses about Sh18 billion ($171 million) in 2016. Deloitte predicts that the cost of cybercrime could rise by as much as 30 per cent in 2017.

The company attributed the high rates of cybercrime to low awareness of threats among local businesses as well as a lack of investment in cyber security.  

Deloitte also warns that high usage of mobile phones without accompanying security software is leaving a lot of Kenyans vulnerable to cyber attack.

“Mobile increases the risk. It means moving from network to network and Wi-Fi networks can become infected. Mobile is also app-driven and these apps are a popular target for malware,” said Mr Erik Van Der Dussen, Deloitte associate director for technology.

Cybercrime is a rising menace in Africa. In a report released earlier this year, IT security firm Serianu, 93 per cent of surveyed African companies acknowledge that cybercrime is affecting their organisations.

Yet, expenditure on cyber security remains low. In addition, 96.1 per cent of cyber security incidents are not reported as companies opt to protect their reputations.

Deloitte has urged local companies to vet devices that they allow onto their networks. In the long term, cyber security has to be incorporated into boardroom-level planning, said the consultancy.

READ: Cybercrime attacks that hit headlines in 2016

These recommendations were included in a report released by the firm on Tuesday. The Technology Media and Telecommunications report predicts industry trends in 2017.

Deloitte also predicted that use of biometric features on mobile devices and in payment systems locally will rise. Already, Equity Bank and Standard Chartered Bank are using fingerprints to identify customers during transaction.

The firm argues that in the coming years, the use of biometric technology will expand to retail and government services.

Using biometric technology, Deloitte says, will cut down on the paperwork, bureaucracy and potential for corruption in both the private and the public sectors.

“Biometrics are welcome from a security point of view…we also think that they can decrease corruption,” said Mr Dussen.

Globally, Deloitte predicts that there will be more than one billion devices with fingerprint reading capabilities by the end of 2017.