Financial Crime World

Mitigating Digital Fraud in Uganda: 10 Recommendations

Digital fraud has become a significant concern in Uganda, threatening the integrity of digital finance systems. To mitigate this issue, we recommend the following strategies:

1. Security Concerns Awareness

  • Raise awareness about key security concerns among digital users to prevent them from succumbing to digital theft.
  • Educate users on best practices for maintaining online security, such as using strong passwords and being cautious of phishing scams.

2. Annual IT Systems Audits

  • Conduct annual IT system audits for commercial banks, remittance platforms, and telecom companies to assess their level of safety and combat risks related to availability, integrity, and confidentiality of IT processes and infrastructure.
  • Identify vulnerabilities and implement measures to address them.

3. Forensic Team Reinforcement

  • Reinforce and retool forensic teams of police, banks, and telecom companies to learn new technologies and techniques used by hackers, enabling them to track digital fraud and identify perpetrators.
  • Provide training on advanced tools and methods for investigating cybercrimes.

4. Stakeholder Collaboration

  • Encourage collaboration among stakeholders (Bank of Uganda, Uganda Communications Commission, National Identification and Registration Authority, clients, commercial banks, and telecom companies) to provide immediate assistance in case of digital fraud.
  • Establish a centralized platform for reporting and addressing digital fraud cases.

5. Digital Fraud Reporting App

  • Design an app used to report digital fraud with the ability to render assistance to victims, supporting the maintenance of a database for commonly used forms of digital fraud and finding possible solutions to eliminate them.
  • Ensure user-friendly interface and accessibility for all users.

6. Policy Think Tank Engagement

  • Engage Policy Think Tanks to conduct research, find sustainable remedies, and new models to safeguard digital financing, fostering a department for Think Tank Partnership and Research in banks and telecom companies.
  • Leverage expertise from think tanks to inform policy decisions and drive innovation.

7. Investment in Technology

  • Invest in technology that addresses emerging security issues in digital finance, allocating a designated budget every financial year to develop software and technologies that foster financial security.
  • Stay up-to-date with the latest advancements in cybersecurity to ensure proactive measures against emerging threats.

8. Electronic Transactions Act Review

  • Review The Electronic Transactions Act, 2011, to include an article directing digital finance service providers to refund proven victims of digital fraud.
  • Strengthen consumer protection provisions and ensure accountability for digital finance service providers.

9. Criminal Investigations Department (CID) Budget Increase

  • Increase the budget for the CID of the police to procure the latest technology and retool officers with contemporary skills to track lost mobile phones and gadgets before SIM cards are swapped by fraudsters, as well as tracking online fraudsters.
  • Enhance capabilities for investigating cybercrimes and protecting citizens from digital threats.

10. Collaboration and Coordination

  • Foster collaboration among government agencies, financial institutions, and other stakeholders to ensure a unified approach in addressing digital fraud.
  • Establish clear communication channels and protocols for reporting and responding to digital fraud incidents.