Cybercrime Threatens Uganda’s Financial Institutions: Experts Warn

A Growing Threat to Financial Stability

Kampala - The specter of cyber fraud is casting a dark shadow over Uganda’s financial sector, with experts warning that the country’s banking and payment systems are vulnerable to sophisticated attacks.

Background

At the 2nd Annual Financial Fraud Forum held at Mesil Hotel in Kampala, leaders from Uganda’s banking and financial institutions gathered to strategize against the growing threat of cyber fraud. The event aimed to strengthen technological, regulatory, and legal frameworks essential for building resilience against cyber threats.

Experts Warn of Sophisticated Attacks

Julius Kakeeto, Chairman of the Uganda Bankers Association (UBA) and primary organizer of the event, emphasized the critical need for resilience and collaboration in combating fraud. “Fraud poses a significant threat to the stability and integrity of Uganda’s banking and financial services sector,” he stated.

Key Measures to Combat Cybercrime

The UBA has initiated several key measures to combat cybercrime, including:

• Development of the Banking Industry Guidelines to Mitigate Fraud (BIGF): This initiative standardizes procedures for reporting fraud incidents and facilitates the sharing of relevant information among financial institutions.
• Know Your Customer, Know Your Employee, and Know Your Partner: These three principles are foundational strategies to mitigate fraud risks.

Experts Emphasize Collaboration and Vigilance

Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, underscored the multifaceted nature of financial fraud and its detrimental effects on the financial system’s role in economic transformation. Hon Nyombi Thembo, Executive Director of the Uganda Communications Commission, addressed the changing landscape of digital threats.

Using Advanced Technologies to Manage Risks

Experts from neighboring Kenya shared insights into the utilization of advanced technologies like machine learning to manage risks associated with cyber fraud. Eric Mugo, Manager of Ethics and Compliance at Safaricom Kenya, noted that proper governance structures are essential to ensure that such technologies are not misused.

Conclusion

As the threat of cybercrime continues to loom over Uganda’s financial sector, experts warn that collaboration, vigilance, and a holistic approach are essential to safeguard the integrity of banking systems and prevent immense losses. Enhancing customer and public financial literacy is critical as a first line of defense against fraud.