Technology, a Key Driver in the Financial Services Industry
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BANKING • COMMODITIES • INSURANCE • STOCK MARKETS • MICROFINANCE • TECHNOLOGY • REAL ESTATE FINANCIAL JUNE 2020 / ISSUE 009, FREE COPY SERVICES MAGAZINE TECHNOLOGY, A KEY DRIVER IN THE FINANCIAL SERVICES INDUSTRY NEW DEVELOPMENTS IN CYBERCRIME,ONLINE FRAUD AND OTHER CYBER SECURITY RISKS FINANCE & BANKING MICRO FINANCE FINANCIAL NEWS The Rise of Open Banking Islamic Banking provides for Mindset Change and Customized sharing of net profit or loss Training Key to financial capability UGANDA KENYA RWANDA SOUTH SUDAN BURUNDI TANZANIA 1 April - June, 2020 Financial Services Magazine GET MORE BILLS WITHPAID WITH CenteVISA Card Financial April - June, 2020 Services Magazine 2 CONTENTS 5. NEW DEVELOPMENTS IN CYBERCRIME, ONLINE FRAUD AND OTHER CYBER SECURITY RISKS 12. THE RISE OF OPEN BANKING 15. FROM ANALOGUE TO DIGITAL: THE CHANGING FACE OF UGANDA’S FINANCIAL LITERACY CURRICULUM 18. MINDSET CHANGE AND CUSTOMISED TRAINING KEY TO FINANCIAL CAPABILITY 23. ISLAMIC BANKING PROVIDES FOR SHARING OF NET PROFIT OR LOSS 25. TOP 10 SKILLS FOR THE FOURTH INDUSTRIAL REVOLUTION 29. SUCCESS STORY OF FORMER UIBFS STUDENT 31. INSTITUTIONAL HIGHLIGHTS April - June, 2020 Financial Services Magazine PUBLISHER Foreword ISO 9001:2008 CERTIFIED THE UGANDA INSTITUTE OF BANKING AND FINANCIAL SERVICES (UIBFS) UIBFS, Plot 10 Buganda Road, P.O.Box 4986, Kampala, Uganda Tel: +256414255847/8 Web: www.uibfs.or.ug CHIEF EXECUTIVE OFFICER Goretti Masadde MEMBERSHIP & BUSINESS DEVELOPMENT MANAGER Sulaiman Semakula REGISTRAR Semakula Richard FINANCE & ADMIN. MANAGER Apollo Michael Engwau EDITORIAL COMMITTEE tilization and leverage of technology Sylvia Juuko, Sulaiman Semakula in financial services has been evolving Benedict Buhanguzi but never before to the current scale. WRITERS/CONTRIBUTORS While institutions sought to automate Dr. George Wilson Ssonko, Mr. Wycliffe Momanyi, Musa Ufor efficiency and albeit for market penetration, Mayanja Lwanga, Sulaiman Semakula the customers especially in our part of the world PHOTOGRAPHY remained slow adopters. Now with COVID -19, both Courtesy & internet sides are active participants and enthusiasts which LAYOUT& DESIGN brings opportunities and threats. As life becomes Ssemanda Paul +256772 049707 better for all, the opportunists in cybercrime pose a grave risk. This issue outlines the risks we face and PRINTING how to deal with them. It also talks about Insurance New Vision Printing & Publishing Co Ltd. Premium Financing (IPF) and Islamic Banking both SALES & ADVERTISING of which are responsive in structure to the COVID 19 Trans 5 Ltd restricted business environment. Lastly we review James Odeke +256704745732 +256786080896 the skills needed in this era, hear from a happy user of the UIBFS service and share some of the online CIRCULATION course offers available for you at the institute. Uganda, Kenya, Tanzania, South Sudan, Rwanda. As we keep healthy and safe from COVID 19, let’s COPYRIGHT safeguard our businesses, finances and career. The information contained in this publication is given in good faith and has been derived from sources believed to be reliable and accurate, however, neither The Uganda Goretti Masadde institute of banking and financial services (UIBFS) nor any person involved in the preparation of this publication CHIEF EXECUTIVE OFFICER accepts any form of liability whatsoever for its contents including advertisements, opinions, advise or information or any consequences from its use. No part of this publication may be reproduced, stored in any retrieval system, or transmitted in any form or by any electrical, mechanical, photocopying, recording or inkjet printing without prior written permission of the publisher. Financial April - June, 2020 4 Services Magazine NEW DEVELOPMENTS IN CYBERCRIME, ONLINE FRAUD AND OTHER CYBER SECURITY RISKS Wycliffe Momanyi he current Digital Age has also witnessed per annum posing the question as to whether a significant increase in the sophistication corporates really understand the risks in the of digital and electronic related crimes. business environment in which they operate. This paper will highlight the various attack Tvectors witnessed & forecasted into the future as When we’re talking about victims of cyber security well as consider the new security measures that attacks, we’re referring to individuals, companies, have been taken and that are being taken to secure and other organizations that are targeted or current and future Fintech innovations and how victimized in some way. The goal for cyber criminals is effective these security measures are. often to acquire information — personal information, names, addresses, financial and other account This paper has three sections information, passwords, trade secrets, intellectual Section 1- Statistics & attack vectors property, etc. — that can be used, traded, or sold on Section 2 – Security set-up for Fintechs the Dark Web. Section 3- Conclusions They accomplish these goals through a variety of BACKGROUND methods such as phishing and spear phishing emails, URL hijacking, structured query language (SQL) The cybercrime economy has grown to enjoy at least injections, and man-in-the-middle (MitM) attacks, $1.5 trillion in profits each year with the value of the as well as a litany of other methods. In some cases, Cyber security market anticipated to reach $300 the goal is purely financial — they seek to manipulate billion by 2024, according to a 2019 press release and trick targeted employees into making large wire by Global Market Insights Inc. underpinning the need transfers to fraudulent accounts through business for the right positioning by big corporates, SME’s/ email compromise (BEC) and CEO fraud attack SMB’s, the public & private sectors institutions and tactics. Why should the modern criminal go through Governments. the hassle of trying to rob a bank the old-fashioned way when they can get the employees at virtually It is interesting to note that despite data breaches any company to fork over thousands or even millions rising at inordinate rates each year, Juniper of dollars to them unwittingly? Research’s Cybercrime & the Internet of Threats 2018 report anticipates cyber security spending will only increase by 9% on average per company, 5 April - June, 2020 Financial Services Magazine Early one-third (31% ) of surveyed security STATISTICS & ATTACK VECTORS COSTS professionals say their organizations have OF CYBERSECURITY experienced cyber-attacks on operational The costs and damages that result from unaddressed technology (OT) infrastructure, according to Cisco’s cyber security vulnerabilities are immense. Cyber 2018 Security Capabilities Benchmark Study that security attacks statistics should be an eye-opener was published in its 2018 Annual Cybersecurity for every company — particularly those that operate Report, while it is estimated that 33 billion records under the assumption (or with the hope) that a will be stolen by cybercriminals annually by 2023 & cyber-attack will never happen to them. Anyone who 146 billion records will be exposed in data breaches thinks that their company — no matter how small or as per the Juniper Research’s Cybercrime & the large — is not at risk because they lack cyber security Internet of Threats 2018 these are actual as vulnerabilities is fooling themselves. Simply put, as opposed to reported data breaches. Specific cases technologies evolve and cyber criminals become cited include; more advanced, it is a matter of when, not if cyber • More than half a billion records (540 million) security attacks will occur. about Facebook users were publicly exposed in two app datasets that were digitally stored in two Cybercrime damages are anticipated to cost Amazon Simple Storage Service (S3) storage businesses and organizations $6 trillion annually buckets, according to a 2019 announcement by by 2021, according to the 2019 ACR from Up Guard. Cybersecurity Ventures. This number, which is up • Marriott breach exposes 500 million user from the company’s 2015 estimate of $3 trillion accounts,this statistic reflects the number of in cybercrime damages annually, “represents the user accounts that were exposed in a data greatest transfer of economic wealth in history, risks breach of Marriott’s Starwood guest database, the incentives for innovation and investment, and which was disclosed in 2018. will be more profitable than the global trade of all • 200 million user accounts were exposed via major illegal drugs combined. Fortnite cyber security vulnerability when hackers took advantage of an old, unsecured • Ransomware damages are estimated to reach website page to send phishing emails. The flaw $20 billion globally The Cybersecurity Ventures was reported in Check Point Research’s January annual crime report indicates that the same 2019 announcement. costs will reach $11.5 billion annually this year and • 1.16 unique combinations of email addresses $20 billion per year by 2021. Unsurprisingly, this and passwords” were exposed & discovered in type of year-over-year increase in anticipated 2019 in a massive breach called “Collection 1.” damages makes Ransomware the fastest- This load of information was discovered by an growing type of cybercrime in the past year. IT security researcher and is thought to be the • This against a backdrop of the fact that largest breach in history to date, according to an cybercrime tools and kits Cybercrime tools article by Fortune and kits can be purchased for as little as $1 on the Dark Web and online marketplaces, MOST COMMON CYBER ATTACKS METHODOLOGIES according