Ethiopia's Digital Payment Boom Creates New Cybersecurity Challenge as Fraud Losses Hit Br 1.3 Billion
Addis Ababa, Ethiopia – September 30, 2026 – Ethiopia's rapid shift to digital payments has delivered remarkable growth in financial inclusion. But it has also created a larger, more interconnected target for fraud and cyber threats. New data from the National Bank of Ethiopia (NBE) shows the scale of the challenge.
Fraud losses across the financial sector reached Br 1.3 billion in 2024. Attempted cyberattacks against public and private institutions more than doubled, with 4,623 incidents recorded in the first half of 2024 alone, a 115% increase from the same period in 2023.
The Numbers Behind the Threat
| Period | Attempted Cyberattacks | Change |
|---|---|---|
| H1 2023 | ~2,150 | — |
| H1 2024 | 4,623 | +115% |
Meanwhile, the volume of money moving through digital channels has exploded.
| Indicator | June 2023 | June 2024 | Change |
|---|---|---|---|
| Digital Transactions | 1.24 billion | 2.47 billion | +99% |
| Transaction Value | Br 4.78 trillion | Br 9.69 trillion | +103% |
| Mobile Money Transactions | 298.83 million | 764.88 million | +156% |
| Mobile Money Value | Br 380.30 billion | Br 1.03 trillion | +171% |
Digital transactions nearly doubled in a single year. Mobile money alone saw its value grow by 171%. As more money moves between banks, mobile-money providers, payment systems, and other platforms, a vulnerability in one part of the ecosystem can quickly affect others.
NBE's Proposed Response
The NBE's draft National Digital Payments Strategy 2026–2030 proposes a centralized approach to financial cybersecurity. Key elements include:
- A dedicated Cybersecurity and Fraud Directorate within the NBE
- A national financial-sector cybersecurity framework for licensed providers
- Shared cybersecurity and fraud desks at licensed switch operators
- A national threat-intelligence sharing system
- A shared AI-based fraud detection system at the NBE
- Consumer protection measures, including action on Authorised Push Payment (APP) fraud and clearer liability mechanisms
The proposed Directorate would coordinate with the Information Network Security Administration (INSA) and the Financial Intelligence Service.
The strategy sets a target of reducing reported fraud from 0.0153% of transaction value in 2024 to 0.0008% by 2030.
Digital Literacy Gap
The strategy also identifies a critical vulnerability. According to NBE data:
- 66% of women do not use mobile money because they do not know how to use it
- 60% of men report the same barrier
This gap between the rapid expansion of digital financial services and users' ability to navigate them safely presents a challenge that technology alone cannot solve.
What This Means for Financial Institutions
Ethiopia's digital payments market has entered a new phase. The challenge is no longer just increasing adoption. It is protecting an ecosystem processing trillions of birr through increasingly interconnected channels.
The NBE's draft strategy is currently open for implementation, with the proposed Cybersecurity and Fraud Directorate targeted for establishment within six months.
How AXUM SEC Supports This Vision
AXUM SEC, Africa's first unified bug bounty and AI-powered penetration testing platform, is ready to support Ethiopian financial institutions as they prepare for these new requirements.
Our platform helps banks, fintechs, and payment providers find and fix security weaknesses before attackers exploit them. We offer:
- Bug Bounty Programs – 500+ verified ethical hackers test systems. You pay only when real vulnerabilities are found.
- AI-Powered Pentesting (AXGNT and AXUMIS) – Autonomous AI agents test systems 24/7 at machine speed.
- PTaaS – Continuous penetration testing that scales with your digital transformation.
- Vulnerability Management – Centralized tracking, prioritization, and remediation.
- Compliance Reporting – Reports ready for regulators, boards, and auditors.
As the NBE moves toward a centralized, coordinated approach to financial cybersecurity, AXUM SEC is positioned to be a partner for institutions that need to meet these new standards.
Media Contact:
AXUM SEC Addis Ababa, Ethiopia hello@axumsec.com www.axumsec.com
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Sources: National Bank of Ethiopia, Draft National Digital Payments Strategy 2026–2030; NBE Financial Stability Report