BUSINESS

Mastercard Raises Alarm over M-Pesa Cybersecurity Risks

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A person transacting on M-pesa
A person transacting on M-pesa
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From paying electricity bills to running businesses, mobile money has become part of everyday life in Kenya. However, the convenience of digital payments is also raising concerns about the security of the financial systems millions of people depend on.

A Mastercard cybersecurity report warns that Africa’s rapid shift to digital services is creating new opportunities for cybercriminals, with Kenya among the continent’s markets facing significant threats.

The report identifies Kenya, Nigeria, South Africa and Morocco as countries responsible for more than half of observed cyber threat activity across Africa. Their expanding digital economies, financial services and growing volumes of online transactions make them attractive targets for criminals seeking financial information and access to business systems.

In Kenya, the widespread use of M-Pesa places mobile money services at the centre of the security debate. An attack affecting these platforms could expose customer information, facilitate fraudulent transactions or interrupt payments relied upon by households and businesses.

“Mobile money has become national infrastructure in Kenya,” said Shabir Ahmed, Mastercard’s Senior Vice President and Customer Solutions Centre Lead for Africa.

His remarks highlight how cyber risks now extend beyond conventional banking systems to the digital platforms supporting daily financial activities.

Mastercard’s findings show that mobile money use across Africa grew sixfold between 2016 and 2025. Digital banking users increased 4.7 times over the same period, while e-commerce activity quadrupled.

The report projects that Africa’s digital economy could reach $1.5 trillion by 2030, making cybersecurity increasingly important as more financial services move online.

“Digital growth is outperforming cyber defences,” Ahmed added.

The challenge is particularly serious for small and medium-sized enterprises, which make up about 95 per cent of registered businesses in Africa and contribute roughly half of the continent’s gross domestic product. Many lack the money and specialist personnel needed to maintain strong cybersecurity systems.

Mastercard also points to a shortage of cybersecurity professionals across Africa, with approximately 200,000 positions unfilled. The growing use of artificial intelligence presents another challenge because criminals can use automated tools to scale phishing campaigns, impersonation and other attacks.

The report calls for stronger cybersecurity investment, better regulation, improved employee training and closer cooperation between governments, financial institutions and technology companies.

For Kenya, protecting mobile money requires both secure platforms and informed users. Consumers can reduce their exposure by keeping their PINs private, avoiding suspicious links and verifying payment requests before authorising transactions.

As digital payments expand, the ability to protect customer funds and personal information will remain central to maintaining trust in Kenya’s financial system.

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