KAMPALA – Housing Finance Bank has fallen victim to a massive heist, with Shs. 5 billion siphoned from customers’ accounts. The sophisticated scheme, uncovered on September 17, 2024, involved both bank officials and external accomplices, including Nigerian nationals. Several suspects have been arrested, but some bank officials remain at large.
The thieves used a network of 216 SIM cards to systematically withdraw money from various accounts at different intervals, highlighting the growing concern of cybercrime targeting financial institutions in Uganda. This incident mirrors a similar heist at Stanbic Bank Uganda last year, where Shs. 6.5 billion was fraudulently withdrawn using forged documentation.
The amount stolen stands at Shs. 5 billion, with bank officials and external accomplices working together to execute the theft. The investigation, led by the Criminal Investigations Department (CID), is ongoing.
Housing Finance Bank’s administration has invited the CID to investigate, but senior officials have declined to comment, citing the sensitivity of the matter. A junior official, however, revealed that the bank’s estimated loss is Shs. 3.5 billion, contradicting the investigation’s findings.
The increasing sophistication of these schemes raises concerns about customer account security across the banking sector. Ugandan banks must prioritize tighter security measures and vigilance to combat cybercrime. The authorities must also step up efforts to combat the growing wave of fraud threatening Uganda’s banking sector.
Managing Director Michael Mugabi and bank spokesperson Doreen Nyiramugisha were contacted for comment but did not respond.
Uganda is facing a significant threat from cybercrime, with estimated annual losses reaching up to UGX 15 billion, according to recent reports.
The staggering figure highlights the vulnerability of the country’s digital infrastructure and the increasing sophistication of cybercriminals.
Sources within the Uganda Police Force’s Cybercrime Unit revealed that the majority of these losses are attributed to various forms of online fraud, including phishing, identity theft, and SIM card swaps.
“The impact of cybercrime on Uganda’s economy cannot be overstated,” said a senior police officer. “We are working tirelessly to combat this threat, but we need greater collaboration from the public and private sectors.”
The Uganda Communications Commission (UCC) has also reported a significant increase in cybercrime incidents, with many cases involving mobile money services and online banking.
Equity Bank Uganda Ltd is currently dealing with the aftermath of a massive alleged fraud scheme involving stock loan and agent float financing products. The investigation, which began earlier this year, revolves around approximately Ush65 billion ($16.7 million) in potentially fraudulent transactions.
To put this into perspective, the bank’s Stock Loan product is designed to provide working capital to entrepreneurs, small and medium-sized enterprises (SMEs), and large businesses across various sectors. Meanwhile, the Agent Float financing product offers unsecured loans to agents to support their operations.
Eight suspects have already been charged in connection with the alleged fraud, which reportedly involved issuing unsecured loans to unqualified individuals. Equity Bank Uganda has assured its customers that services will continue uninterrupted despite the ongoing investigation.
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