The Challenges of Cybercrimes in International Business Operations Among Commercial Banks in Kenya

Abstract

Throughout the years, the world has become a global village where businesses have shifted their operations from the domestic market to the international market. Technology has enabled this to happen around the globe by creating networks and business relationship. Technology development has not only impacted the globe positively, but also it has impacted negatively by introduction of cybercrimes which have been a great challenge to the business operating worldwide. Its existence has led to great corporate companies to go down into pitfalls because of losing billions and billions of money. The existence of cybercrimes has negatively affected the way businesses have been operating internationally. The objective of this study was to establish the challenges of cybercrime in international operations amongst all the banks in Kenya. The study design used in this study was cross sectional descriptive design. The target population of the study was 40 banking institutions in Nairobi. Primary data collection technique was employed, and was done through use of questionnaires which were given to be filled by the ICT managers who were knowledgeable in regards to cybercrimes. Descriptive statistics with the aid of excel sheets and Statistical Package for Social Sciences was employed. Findings indicate that, Identity theft and hacking affects banking operations to a great extent in the Kenya’s commercial banks. In addition, the study found that, malware, phishing, online intrusion, card information skimming and electronic money laundering affected the operations of the banks to a moderate extent. Furthermore, the study has established that, compensation to customers due to loss of their money in cybercrimes is a threat to the growths of the banks. Moreover, study has argued that, using strong passwords, employing qualified ICT officers, having a backup plan for data, and creating employee awareness on cybercrimes, prevents effects of hacking substantially. Based on findings, the study recommends stringent measures to prevent or mitigate against the effects of cybercrimes. In addition, the study recommends that organizations should have a regular back up of their information. Furthermore, the study recommends that employers should build the capacity of their ICT staff and also create awareness on cybercrimes for other staff members and their clients as well, to mitigate against the challenge.