Cybersecurity in East Africa: Threats and Mitigation Strategies for Financial Systems

Cybersecurity threats to financial systems are on the rise globally, with East Africa facing unique challenges due to its geographic and socio-economic conditions. The study employed a mixed-method approach, integrating qualitative interviews with quantitative data analysis on cyber-attack patterns and system vulnerabilities. Analysis revealed that over 40% of cyber-attacks targeted financial institutions in Seychelles, primarily leveraging phishing tactics and SQL injection attacks. The average time to detect breaches was approximately 24 hours. Despite the identified threats, a robust cybersecurity framework can significantly reduce vulnerabilities and improve response times. A comprehensive cybersecurity strategy should include regular security audits, employee training programmes, and partnerships with international cybersecurity firms for advanced threat detection. Model estimation used θ̂=argminθ∑ᵢ(yᵢ,f_θ(xᵢ))+λθ₂², with performance evaluated using out-of-sample error.