Cybersecurity has been identified as a top risk to Namibia’s financial stability.
This is after a number of cybercrimes were reported across the banking and non-banking financial sector last year.
According to the Bank of Namibia’s financial stability report, there is a high chance that these cyber risks will materialise in 2025.
“Cyberthreats in the form of phishing, spoofing and over-reliance on third-party service providers remain key concerns.”
The bank has recommended institutions to increase awareness campaigns to combat phishing and building stronger firewall standards.
Additionally, multifactor authentication to counter spoofing, and enhance procurement policies and due diligence procedures to manage third-party risks have been recommended.
“The banks are required to continuously enhance their cyber risk management practices,” reads the report.
Namibians lost N$50.7 million to fraudsters in 2024, a N$4.7 million increase from N$46 million in 2023.
The majority was lost through electronic fund transfer fraud, which amounted to N$29 million.
The central bank says these attacks often take the form of fraudulent emails, text messages, phone calls or websites that appear legitimate.
A total of N$19 million in card fraud was committed, up from N$18 million in 2023.
Electronic money, which includes mobile wallets, prepaid cards and digital payment platforms, saw a decrease in fraud cases with N$2.7 million – down from N$11 million in 2023.
Other risks to the country’s financial system are greylisting and climate change.
“Risks emanating from climate change remain broadly unchanged, with a medium risk of materialising during 2025,” reads the report.
According to the report, this risk comes from a lack of growth in the agriculture sector.
“Going forward, climate change continues to have asymmetric effects on financial stability,” says the report.
Namibia Financial Institutions Supervisory Authority (Namfisa) chief executive Kenneth Matomola says as financial conditions are shifting, new risks are emerging, and some risks that previously seemed less significant are now reappearing in new and more complex forms.
“Our vigilance, therefore, must remain steadfast and unwavering. In this regard, from the non-banking financial institution sector, work on legislative reforms continue in order to remain on top of our game,” says Matomola.
He says Namfisa and the Bank of Namibia, in close collaboration with the Ministry of Finance and Social Grants Management, are continuously strengthening supervisory frameworks.
“We are fully prepared and remain deeply committed to upholding the integrity and stability of our financial sector,” says Matomola.
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