Rise in Cybercrime in Banks Worrying: Experts

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Kampala - Uganda Police Force Reports Significant Increase in Cybercrime Cases

The Uganda Police Force has reported a significant increase in cybercrime cases, with over Shs19.2 billion lost to fraudsters in 2022 alone. The alarming trend has left many experts and officials concerned about the security of financial transactions.

Fraudsters Using Stolen Information from Public Offices

According to retired human resource officer, Ms Phiona Nafula, who fell victim to identity theft, fraudsters have been using stolen information from public offices such as chief administrative officers (CAOs) and town clerks’ offices to commit crimes. The carelessness of some office workers in handling sensitive information has made it easy for criminals to access and use personal data.

Connivance between Bank Staff and Fraudsters

Cybersecurity experts attribute the rise in cybercrime to the connivance between some bank staff and fraudsters. “If there is a fraudulent scheme, it has to be within somebody from the bank and that person who can exploit the system,” said Mr Benson Mwesigwa, associate director for advisory services at KPMG Uganda.

Police Record 245 Cases of Cybercrime in 2023

The police have recorded 245 cases of cybercrime in 2023, resulting in losses worth Shs5 billion. Economic crimes such as financial fraud have also increased significantly, with over 12,924 cases reported last year.

Experts Urge Government to Take Data Protection Seriously

Experts say that the government needs to take data protection “extremely seriously” and enhance its procedures for protecting records. “Today every company or organisation worth its name has more than 80 percent of its workforce using computers to generate and store information. But they don’t guard the information jealously,” said Mr Steven Masiga, a researcher.

Cost of Cyber-Attacks

The cost of cyber-attacks is not only measured in financial terms but also in terms of compromised data, loss of customer trust, and damage to a company’s reputation. According to Cybersecurity Ventures, the global cost of cyber-attacks is projected to reach $9.5 trillion.

Experts Call for Comprehensive Security Rules

In response to the rising cases of cybercrime, experts are calling on the government to enact and enforce comprehensive security rules to protect critical infrastructure, sensitive data, and personal information.

Financial Institutions Losing Billions to Fraudsters

The situation has raised concerns among financial institutions, with many losing billions of shillings to fraudsters. “Many financial institutions have lost billions of shillings to such fraud. The fraudsters are stealing an individual’s identity details to fraud banks and the victims,” said Mr Andrew Musoke, a former banker.

Cybersecurity Should be Concern for Everyone

As the country grapples with the increasing threat of cybercrime, experts say that cybersecurity should no longer be seen as an IT challenge but rather as a concern for everyone working in the financial sector and its customers.