Uganda Grapples with Rising Cyber-Fraud in Finance Sector
A recent report by global consulting firm PwC has revealed a disturbing trend of cyber-fraud and economic crime in Uganda’s finance sector, with at least six out of 10 organizations falling prey to these crimes over the last two years.
Forms of Economic Crime
The report notes that customer fraud, asset misappropriation, procurement fraud, bribery, and supply chain fraud are among the most common forms of economic crime reported by Ugandan businesses. These types of crimes have been facilitated by the growing use of digital payments and online financial services, making it easier for criminals to steal money from unsuspecting victims.
Cyber-Crime on the Rise
The report highlights that cyber-crime is the largest crime incident in Uganda, accounting for 22 percent of all reported cases. Financial institutions have been particularly targeted, with incidents of cyber-crime reportedly disrupting entire operations rather than just specific sections of businesses. Experts say that this trend is linked to the growing use of digital payments and online financial services.
Consequences of Cyber-Crime
Experts warn that cyber-criminals are becoming more sophisticated, committing fewer but more lucrative attacks. To combat this trend, experts say that it’s essential to make cyber-crime a risky business by increasing the penalties for those caught committing these crimes. The Uganda Bankers Association executive director, Wilbrod Owor, urged authorities to take decisive action against cyber-criminals, saying that their activities threaten the attainment of a cashless economy.
Government Response
The report’s findings are corroborated by another recent study by KPMG, which found that East Africa has one of the highest rates of cyber-attacks in the world. The Uganda Communications Commission has vowed to take action against economic crime, with plans to implement a new regulation aimed at tackling these crimes.
Challenges in Fighting Economic Crime
Experts say that government officials remain one of the biggest threats to fighting economic crime and fraud, citing corruption and collusion as major obstacles to eradicating these crimes. “Even increased pay has not been good enough in averting theft in government,” said Accountant General Lawrence Semakula.
In conclusion, Uganda is grappling with a growing problem of cyber-fraud and economic crime in its finance sector. It’s essential for authorities to take decisive action against cyber-criminals and implement measures to prevent these crimes from occurring in the first place.
Key Takeaways:
- Cyber-crime is the largest crime incident in Uganda, accounting for 22 percent of all reported cases.
- Financial institutions have been particularly targeted by cyber-criminals.
- Experts warn that cyber-criminals are becoming more sophisticated and committing fewer but more lucrative attacks.
- The government has vowed to take action against economic crime, with plans to implement a new regulation aimed at tackling these crimes.