Uganda Banks Report Shs24 Billion Lost to Cyber and Fraud Incidents

Uganda’s financial institutions have reported a significant surge in cyber and fraud-related incidents, with a total of 6,533 cases recorded between January and August 2026. The direct financial losses stemming from these incidents amounted to Shs24 billion, while an estimated Shs68 billion remains at risk.

These alarming figures were unveiled at the 4th Annual Financial Sector Anti-Fraud Forum, themed “Safeguarding the Consumer: Beyond Infrastructure, Into Enforcement.” According to Michael Mugambi, Chairman of the Uganda Bankers’ Association (UBA), persistent threats include peer-to-peer and wallet fraud, digital channel compromises, and internal process abuse. He emphasized that fraud not only impacts financial accounts but also erodes capital, deters investment, and damages the sector’s credibility, which heavily relies on trust.

The judiciary also highlighted challenges in prosecuting financial crimes, noting that digital technologies make it difficult for criminals to leave physical trails. Delays in case resolution are often attributed to inadequate training, evidence handling, and coordination issues among investigators, prosecutors, and the judiciary. The judiciary is exploring specialized approaches, including enhanced training and better collaboration.

The Anti-Fraud Consortium, established to facilitate information sharing on fraud incidents among financial institutions, has seen a substantial increase in reported cases, averaging 600 per month. The consortium is considering allowing customers to report fraud directly to further enhance intelligence gathering and intervention.

Proposed reforms by the banking sector include minimum sentencing guidelines for financial fraud, improved asset recovery mechanisms, specialized investigation teams, and potentially dedicated courts for financial crimes. These measures are seen as crucial for building public confidence as Uganda aims to expand access to formal financial services.

https://nilepost.co.ug/news/372865/uganda-records-6533-cyber-and-fraud-incidents-losses-hit-shs24bn