Financial Crime World

Headline: Eastern Africa, Specifically Uganda, Witnesses Surge in Economic Crime as Digital Transactions Rise

Key Findings from PwC’s Economic Crime and Fraud Survey for Eastern Africa

Kampala, Uganda

According to a new report by PwC, Ugandan businesses and organizations have experienced a significant increase in economic crime and fraud incidents over the past two years [1]. The 2022 Economic Crime and Fraud Survey for Eastern Africa reveals that:

  • 60% of businesses in Uganda and the region have been victims of economic crime.
  • 63% of eastern African businesses experienced fraud within their organizations.
  • Cyber-crime was the largest crime incident, with reported cases at 22%.

Key Findings and Concerns

At the report’s launch in Kampala, Mr. Muniu Thoithi, PwC’s Advisory and Forensics Leader for Eastern Africa, described the rise in economic crime as concerning and a cause for urgent intervention [1]. Key findings from the report include:

  1. Customer fraud, asset misappropriation, procurement fraud, bribery, and supply chain fraud are more common in the region compared to the global average.
  2. Cyber-crime is the largest crime incident, affecting 22% of businesses.
  3. The financial sector accounts for the majority of respondents (47%), making it a preferred target for cybercriminals.
  4. Fewer cases of human resource fraud, tax fraud, government relief fraud, and ESG reporting fraud were reported.

Addressing the Cyber-crime Threat

Mr. Wilbrod Owor, Executive Director of the Uganda Bankers Association, emphasized the importance of making cybercriminal activities riskier and costlier, as digital transactions become more common [1]. He noted:

  • Digital transactions have increased East Africa’s vulnerability to cyber-attacks.
  • Cyber-attacks tend to have more comprehensive consequences, affecting the entire organization rather than isolated sections.

Collusion and Government Fraud

Mr. Lawrence Semakula, Accountant General, indicated that collusion remains a significant means through which government officials perpetrate fraud and corruption, despite pay increases [2].

Tougher Regulations to Tackle Economic Crime and Fraud

Ms. Julianne Mweheire, Uganda Communications Commission’s Director of Industry Affairs and Content Development, noted that the findings in the PwC report align with their research [1]. She added that a new Security Docket regulation has been enacted to crack down on such illegal activities.

[1]: PwC’s Economic Crime and Fraud Survey for Eastern Africa Report [2]: Ugandan official: Corruption remains a significant problem despite pay increases