Uganda’s Financial Sector Confronts Growing Threat of Identity Theft and Fraud

Strengthening Technological and Regulatory Frameworks

In the face of an increasingly complex threat landscape, Uganda’s banking and financial services sector is set to convene at the second Fraud Forum in Kampala next Wednesday to discuss strategies for strengthening technological and regulatory frameworks. The event, hosted by the Uganda Bankers’ Association (UBA) in partnership with Visa, Bank of Uganda, Uganda Communications Commission, and National Payment Systems Providers Association, aims to assess progress since last year’s inaugural gathering, as well as new developments and trends.

Threat Landscape: Identity Theft and Fraud

Despite efforts to combat fraud, the sector remains vulnerable to identity theft, impersonation, forgery, and cash suppression, which account for a staggering 42.4% of all fraud cases in Uganda. Digital or cyber-related fraud follows closely at 31.9%, while loan fraud ranks third at 25.7%.

Stiffer Penalties and Comprehensive Review of Legal Framework

According to UBA’s head of communications and corporate affairs, Ms Patricia Amito, the financial sector is calling for stiffer penalties and consequences for those found guilty of or linked to financial sector fraud. A comprehensive review of Uganda’s domestic legal framework has been undertaken and compared with other jurisdictions to address the evolving nature of fraud.

People Aspects: Behavior Change and Financial Literacy

The forum will also focus on people aspects, recognizing that investment in behavior change, awareness, and financial literacy is crucial for preventing misuse and abuse of authority as well as safe custody of instruments for accessing bank or mobile money accounts. As Uganda strives to become a key investment destination, it is imperative that the sector works together to build resilience against fraud and maintain stability and integrity.

Creating a Safer Environment

By addressing these pressing concerns, the Fraud Forum aims to provide a platform for financial sector players to share knowledge, best practices, and experiences in combating identity theft and other forms of financial crime. The event promises to be a vital step towards creating a safer and more secure environment for both individuals and businesses operating in Uganda’s thriving financial landscape.

Conclusion

The Fraud Forum is an essential initiative that demonstrates the sector’s commitment to addressing the growing threat of identity theft and fraud. By working together, the financial sector can build resilience against these threats and maintain stability and integrity in Uganda’s financial landscape.