Challenges and Readiness for Cybersecurity Threats at Selected Private and Governmental Banks

Abstract

The risk level from cybersecurity threats faced by banks has surged in recent years due to the global increase in cyberattacks, with banks being prime targets. Sensitive data and organizational security are at significant risk due to these escalating threats. This situation is exacerbated by the absence of a standardized cybersecurity framework to safeguard online financial data transfers between banks and their clients. To address these challenges, a new cybersecurity framework has been developed, serving as a guide for financial institutions to protect their data effectively.

To meet the research objectives, a mixed-method approach, incorporating both quantitative and qualitative methods, was employed. The survey questionnaire and interview outline were created by partially adapting existing works and developing new ones as needed. Cybersecurity professionals from the Commercial Bank of Ethiopia, Development Bank of Ethiopia, Nib International Bank, and Tsedey Bank participated in this study. The quantitative component involved 50 respondents from both private and government banks, representing a variety of job titles, responsibilities, and work histories. For the qualitative study, direct interviews were conducted with four bank cybersecurity directors. Alternatively, the researcher could use the census approach, also known as the complete enumeration survey method. Quantitative data were analyzed using the SPSS software program and relevant descriptive statistical procedures, while open coding techniques were used for the qualitative data analysis.

The study results indicated that social engineering attacks (59.1% in private banks and 71.5% in government banks), phishing attacks (45.4% in private banks and 46.4% in government banks), and DDoS attacks (32.1% in private banks and 22.7% in government banks) are the most prevalent threats facing the banking sector. Malware also poses a significant challenge.