Financial Crime World

Uganda’s FinTech Sector Faces Surge in Cybercrime: Experts Call for Collaboration and Robust Security Measures

Concerns and Statistics

By Innocent Kawooya

Uganda’s thriving financial technology (FinTech) sector, which has significantly contributed to financial inclusion and innovative transactional solutions, is now grappling with a growing threat from cybercrime. As FinTech expands into domains like money transfers, virtual assets, school payment platforms, online betting, and the dark web, the need to bolster cybersecurity measures is more crucial than ever.

  • Senior Systems Officer at Uganda Financial Intelligence Authority (FIA) Discloses Statistics: Sherifah Tumusiime Banana revealed that about 60% of Ugandan cybercrimes relate to fraud and money laundering, accounting for one-third of all cybercrimes. Tax-related crimes make up around 30%, and corruption cases make up the rest.

Collaborating for a Stronger Security Ecosystem

Given the diverse FinTech business landscape, Ms. Tumusiime advised collaboration between FinTech firms and regulatory bodies. Sharing intelligence and best practices is essential in building robust security controls.

Public Awareness and Reporting

The Ugandan Police Force’s Deputy Director of ICT, Ezra Mujabwami, highlighted the urgency to increase public awareness about cybercrime-related laws and reporting mechanisms. Despite laws like the National Payment Systems Act and Data Protection and Privacy laws, many consumers remain unaware of their jurisdiction.

  • Training and Reporting Initiatives: The Ugandan Police Force has established a security operations center and launched training programs for personnel in electronic crime scene management. Mujabwami emphasized the importance of reporting any suspicions and taking proactive measures to protect sensitive information.

Protecting Sensitive Data

Albert Gita, Chief Information Officer at MoMo from MTN Uganda, underlined the significance of thorough due diligence when working with third-party vendors handling sensitive data. MTN Uganda meticulously assesses these vendors’ financial stability, security certifications, reputation, compliance checks, and performance reviews to ensure secure data handling.

Building Trust with Collaboration

Collaboration between traditional financial institutions and FinTech players is crucial in establishing trust through adherence to international security standards, frequent platform audits, responsive customer service, and acceptable turnaround times.

Committing to a Secure Digital Future

With the digital age advancing, securing Uganda’s FinTech sector cannot be overemphasized. Initiatives such as the Uganda Bankers Association’s security operations center and HiPipo’s Mobile Money Police serve as powerful examples of this commitment. A collective call to action towards a secure digital future for all is essential.