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SBM Indian unit loses Sh1.4bn to cyber fraud

SBM branch in Nairobi
SBM branch in Nairobi. FILE PHOTO | NMG 

Mauritius banking group SBM Holdings said on Wednesday that its Indian operations suffered a cyber fraud earlier in the week, and that the bank has potentially lost up to $14 million (about Sh1.4 billion).

SBM said that no loss had been caused to customers and that the Indian business operations would continue as normal.

“The SBM Group remains well capitalized and has sufficient liquidity to continue to finance its future plans,” the company said.

SBM said that an internal inquiry had been initiated, with the Indian operations carrying out a full cybersecurity review. Recovery efforts are being pursued and SBM expects to recover a significant portion of the stolen sum.

Last year, the Central Bank of Kenya (CBK) required Kenyan banks to submit to it detailed reports of how they plan to tackle cyber security threats.

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“CBK is well aware of the fact that cyber risk will keep morphing due to the evolution of cyber threats in Kenya and across the globe. Therefore, CBK mandates all institutions to review their cybersecurity strategy, policy and framework,” the regulator said at the time.

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