The information technology explosion possesses a major threat to the very existence of businessorganizations. In the last one decade, Kenya’s banking sector has lost billions to cybercriminals. The business competition environment has drastically changed forcing commercial banks toadopt over 80% e- Transactions. The volumes of customers seeking banking services, the market coverage and the networks created brings many micro and macroeconomicsenvironments and a milliard of players, putting the banks in a vulnerable position. The purposeof this paper was to Investigate extent to which cybercrime influences performance ofcommercial banks in Kenya. The specific objectives were; to investigate the extent to whichcybercrime influences detection and prevention costs of commercial banks in Kenya, todetermine the extent to which cybercrime activities affects bank profitability. To evaluate effectsof technological response costs on performance of commercial banks in Kenya and to investigatethe influence negative brand image costs on performance of commercial banks in Kenya.Explanatory research design was used. This allowed the researcher explore and explain thephenomena surrounding the vice and how it affects the performance of commercial banks inKenya. It’s important since if not controlled the sector sustainability is not guaranteed. Theresearch targeted the tier one banks of Kenya which were purposively selected since they servethe highest number of clientele. The unit of enquiry was 200 top and middle level managers thatmade the target population and out of these a 30% sample was selected randomly. Descriptiveand inferential statistics analyzed to obtain the relationship between the variables given the model y=x 0+bixi, + b ii x ii, + b iii x iii, + b iv x iv + e, where each variable was represented. The findingswere presented by use of frequencies, charts and graphs. Pearson’s correlation was calculated toshow the relationship between the variables .the findings showed a direct positive relationshipbetween the independent and dependent variables.
Keywords: Cybercrime, E-Transaction, Performance, System Hacking and Skimming Digital Economy