Cybercrime Threatens Ugandan Finance Sector: UCC Warns of Rising Attacks Putting Clients’ Funds at Risk

Financial institutions in Uganda are facing a heightened cybersecurity threat, leaving clients’ funds vulnerable to international hackers. Uganda Communications Commission (UCC) Ag. executive director, Nyombi Thembo, has cautioned against the rising attacks that put the financial sector at risk.

Cost of Cybersecurity Threats in Uganda

The cybersecurity threat in Uganda is estimated to cost the country over sh15.5b yearly. However, financial institutions are lagging behind in investing in cybersecurity protections. Thembo emphasized the importance of addressing this issue following the increasing number of cyberattacks worldwide causing trillions in losses.

Cyber Stars Competition 2022

With a goal to close the gap in human capacity within the cybersecurity field and promote cyber awareness among Ugandans, UCC recently launched the Cyber Stars Competition 2022. Over 250 students from Ugandan universities took part, with domains including vulnerability assessment, penetration testing, digital forensics, and computer network defense.

The Impact of Cyberattacks on Financial Institutions

Financial institutions and organizations need to have diverse teams in place responsible for IT governance, risk assessment, and infrastructure security. Hosea Naturinda, the regional information security officer for Standard Bank Group Africa, advised local financial institutions to invest in appropriate software and hardware to prevent becoming targets.

Significant Losses

Global cybersecurity workforce lacks over 3.5 million qualified personnel to address the cybercrime issue. Despite Microsoft Corporation’s $5b annual investment on system upgrades, hundreds of breaches continue to occur, resulting in significant losses.

Addressing the Skills Gap in Cybersecurity

UCC Director for ICT and Research, Christine Mugimba, emphasized the importance of the Cyber Stars competition in addressing the skills gap in the cybersecurity field. The competition will select eight individuals for optimal training, with each student receiving $600 for training delivered by the Nairobi-based Silent.

UCC Hosts Launch Event and Participating Universities

UCC hosted the launch event at its offices in Bugolobi. Universities such as Kabale, Bishop Stuart, Victoria, UTAMU, Isbat, Cavendish, Busitema, Makerere, and Mbarara University of Science and Technology participated.

Recent Cyberattacks in Uganda

Uganda recently experienced a significant loss through a mega heist affecting several telecoms, banks, and utility payment systems that used Pegasus Technologies, a third-party payment technology company, as a transaction aggregator.

Interpol-Uganda Report on Cyberattacks

Recent reports from Interpol-Uganda reveal that hackers became more destructive during the COVID-19 lockdowns, resulting in over $4m (sh14.8b) stolen through online fraud, bank fraud, issuance of fake visas, and business fraud. With the increasing digitalization of transactions, financial security has become a paramount concern.