South Africa’s place as a key monetary hub for Africa is being undermined by a lacklustre method and dedication to cybersecurity, in keeping with a brand new report. Addressing cellular account safety by introducing biometrics is amongst steps that ought to be thought-about, in keeping with an article from the Cybersecurity, Capacity Development, and Financial Inclusion undertaking inside the Carnegie Endowment for International Peace.
The case examine is certainly one of six, inspecting the monetary markets of South Africa, Nigeria, Cameroon, Uganda, Ghana and Zimbabwe.
The report on South Africa, titled ‘Dividend or Liability? Financial Inclusion, Digital Deprivation, and Cyber Risk Proliferation in South Africa,’ was written by Noëlle Van der Waag-Cowling, who leads the Stellenbosch Institute for Governance and Leadership in Africa (SIGLA) Cyber Program.
A rising base of consumers who had been beforehand excluded from monetary providers is a serious potential profit to South Africans, companies and the general economic system, but additionally will increase cybersecurity danger, the report argues.
The onboarding train for folks shopping for SIMs in South Africa is onerous and paper-based, in keeping with the report, guaranteeing compliance however not cybersecurity. Compromised SIMs are frequent, and coping with them a difficult course of. A double opt-in course of together with biometrics could be a marked enchancment, the writer suggests. The vast use of one-time passwords (OTPs) over SMS doesn’t present adequate safety, and may very well drive SIM swap fraud.
Voice biometrics are broadly utilized in Africa, the report says, because of the know-how’s ease of use and low rollout prices, and will considerably enhance the scenario.
Legacy approaches involving ID numbers and OTPs by way of SMS and e mail may very well be changed with digital identity and biometrics, with South Africa, “a late adopter of such technologies,” benefiting from the teachings discovered from the experiences of different counties.
Van der Waag-Cowling concludes with six suggestions, together with the broader use of digital identity and biometrics. Beyond these suggestions, nevertheless, lie two main social challenges.
Cybersecurity consciousness and monetary literacy charges have to be raised, and the units and providers that present cybersecurity have to be made extra reasonably priced for lower-income households.
The majority of banks throughout Africa are prioritizing reaching retail banking clients, in keeping with ‘The African Digital Banking Transformation Report 2022’ from African Banker.
Cybersecurity and resilience collectively are the highest development in significance for 2022/2023, in keeping with bankers surveyed for the report, however as buyer bases develop in different nations, these with insufficiently safe cellular account ecosystems might face related challenges to South Africa.
Africa | biometrics | cybersecurity | digital identity | monetary providers | fraud prevention | identity verification | KYC | onboarding | South Africa