Tanzania has said it is on course to finalize a cyber crime act that will safeguard business, especially financial institutions.
While speaking to parliament, deputy finance Minister Saada Mkuya said the law will help curb theft through banking institutions with the Bank of Tanzania already distributing guidelines to on how to start payment systems online, reported Daily News.
Mkuya said such a law would reduce or completely eliminate challenges arising from online banking and the regulator has asked banks to use MasterCard and Visa which utilises chip technology and is harder to scheme.
“The government wants banks to stop using the old system of using magnetic strips which are outdated and can easily be manipulated to steal money from banks,” she said.
According to speakers at a two-day summit of East Africa Banking and IT Security in April, banks lost TZS1.3 billion (US$800,000) in cyber fraud during the past few years.
The summit exposed the lack of legislation as a major cause for the surge in cyber crime targeting banks.
“There are ongoing technical preparations for the enactment of the law expected to be finalized before end of the year,” said Zaipuna Yonah, director of information, communication and technology.
The central bank has also constituted a task force comprised of members from the Tanzania Bankers Association, Tanzania Communications Regulatory Authority (TCRA), Financial Intelligence Unit and Cyber Crime Unit in the office of the director of Criminal Investigation to author a report that will offer recommendations on how to protect the industry from commercial fraud.
