Afriwise Blog

Liability for Cybercrime: A Flexible Balancing Test

Written by Dentons | 25/09/2024

Data and cybersecurity breaches are a top concern for all businesses. As the world becomes ever more digitalised, the need to protect online spaces from unauthorised intrusions has become more critical. Every organization has a business interest and a legal obligation to take appropriate steps to protect its data and systems, and to deal with incidents quickly when they happen.

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Detection and prevention of cyberattacks is a constant challenge because of the fast-paced advancement in technology used by cybercriminals. These cyber-attacks are usually aimed at accessing, changing, or destroying sensitive information, extorting money through ransomware or interrupting business processes to achieve other ulterior motives.

 

Taking the right approach to cybersecurity compliance and dealing with incidents swiftly is essential but can be challenging. Ugandan law and practice, like that of other jurisdictions, is often playing “catch up” to the rapid advancement of technology.

 

To put the threat in perspective, the Uganda Police Force reported in its 2023 Annual Crime Report that cybercrimes led to the loss of over UGX. 1.5 billion (approximately US$400,000) in 2023. This figure does not take into consideration unreported incidents of cybercrime, or the value of data stolen by cybercriminals.

 

Financial institutions and other businesses need to tighten internal systems and procedures, invest in employee training and raise awareness among clients and the public in order to protect against this growing threat which is bad for business and market growth.

 

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Read the full publication at Dentons