- Ugandan authorities have arrested nine officials from the Ministry of Finance following a major cyberattack on the Bank of Uganda, which led to the loss of approximately USh 62 billion ($16.87 million).
- The arrested individuals include senior personnel from the Treasury Department.
- This incident raises concerns about the security of Uganda’s financial institutions.
The breach was first reported in November 2024 when State Minister for Finance, Henry Musasizi, revealed that hackers had infiltrated the central bank’s systems, Reuters reports.
The cybercriminals, allegedly operating under the alias "Waste," executed fraudulent transactions, raising alarms about the security of Uganda’s banking infrastructure.
This high-profile cybercrime case has further shaken public confidence in Uganda’s financial institutions. With key finance ministry officials implicated, the scandal suggests that internal corruption or negligence may have played a role. Trust in government agencies handling national finances is critical, and such incidents erode public faith in the banking system.
Additionally, Uganda has faced previous challenges in financial security. In response to increasing fraud cases, the Bank of Uganda had already mandated ID verification in April 2024, for transactions exceeding 1 million Ugandan shillings. However, the latest breach highlights that internal governance and cybersecurity protocols may still be insufficient.
Uganda’s central bank breach is part of a broader pattern of rising financial fraud across Africa. In South Africa, for example, the South African Banking Risk Information Centre (SABRIC) reported a surge in fraud cases, including a 100% increase in fraudulent applications for vehicle asset financing and a 46% rise in mortgage fraud.
Similarly, in March 2024, Ethiopia’s largest bank, the Commercial Bank of Ethiopia, suffered a "systems glitch" that resulted in a $40 million loss.
The increasing frequency of financial fraud across the continent underscores the need for stronger regulations, better cybersecurity infrastructure, and stricter enforcement of financial oversight policies. Many financial institutions across Africa struggle with outdated security systems, making them vulnerable to both internal and external threats.
To rebuild trust and prevent future breaches, Uganda and other African nations must prioritise cybersecurity enhancements. This includes upgrading banking IT systems, implementing stricter internal oversight, and ensuring that financial institutions are transparent in their operations.
Regulatory bodies should also enforce stricter measures for financial transactions, with independent audits and real-time monitoring to detect suspicious activities. Additionally, governments must foster better collaboration with global cybersecurity experts to stay ahead of evolving cyber threats.
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As financial fraud continues to rise across Africa, it is clear that a coordinated effort is needed to secure banking systems and restore public trust in financial institutions.