Cybersecurity Threats and Mitigation Strategies in East African Financial Systems: A Comparative Study Focus on Malawi 2013

Cybersecurity threats in financial systems are a critical concern for East African countries, including Malawi, where inadequate protection can lead to significant economic losses and undermine financial stability. A comparative analysis was conducted using qualitative data from interviews with financial regulators, banks, and cybersecurity experts. Data were analysed through thematic content analysis to identify common threats and gaps in protection. Analysis revealed that malware attacks represent a significant threat (85%) to financial systems in Malawi, with inadequate employee training being a major contributing factor (40%). Current cybersecurity measures are insufficient for addressing these challenges. Recommendations include increasing investment in employee education and implementing more robust security protocols. Enhance employee cybersecurity knowledge through regular training programmes; introduce advanced firewalls and intrusion detection systems to bolster defenses against malware and other threats. Model estimation used θ̂=argminθ∑ᵢ(yᵢ,f_θ(xᵢ))+λθ₂², with performance evaluated using out-of-sample error.