KENYA LOSES SHS 3BN IN CYBER CRIME EVERY YEAR

From Daily Nation
By PETER NG’ETICH pngetich@ke.nationmedia.com
Posted Monday, April 9 2012 at 22:30

Cyber crimes cost the economy about Sh3 billion annually, say forensic experts.

Experts argue the crime committed through new technologies poses the biggest challenge to organisations and the police.

Speaking during a forensic conference in Nairobi at the weekend, O’Sullivan Associates country chief executive Sosthenes Bichanga said the banking sector alone loses about Sh2.1 billion yearly in cyber crime.

“Embezzlement of funds in the public and private sector has moved to ICT level and qualified accountants are better-suited to handle forensic investigations,” Mr Bichanga said. He called for the establishment of anti-fraud committees in organisations to tackle cyber crime.

US-based anti-fraud expert Sir Charles Hester urged organisations to employ Forensic Certified Public Accountants (FCPA) to forestall technology-driven crime.

“It will be pointless for organisations to work hard to market their products while cash is siphoned through loopholes which can be sealed by FCPA experts,” Mr Hester said.

O’Sullivan Associates investigations and training director Ian Ross told participants that organisations needed well-planned responses to fraud to serve as a deterrent.

Mr Ross called for anti-fraud training for staff, including senior managers and board members as a strategy to curb financial malpractices.

Talking to the Nation, Kenya Bankers Association chief executive officer Habil Olaka said their members had not done a survey to determine exactly how much banks lose through cyber crime.

“Though we cannot confirm or deny, some organisations exaggerate such figures to market themselves,” Mr Olaka said.

Kenya is ranked top among countries with the highest rate of economic crimes, according to a report released last December. The PriceWaterhouseCoopers report shows the vice is fastest growing, at nine per cent, compared to other countries. The survey was conducted in 78 countries.

From: http://www.nation.co.ke/News/Kenya+loses+Sh3bn+in+cyber+crime+every+year/-/1056/1383234/-/7wboymz/-/index.html