Bankers & stakeholders convene to discuss fraud in banking and payment services
Drake Nyamugabwa
On Wednesday 24th July 2024 Uganda Bankers Association (UBA), National Payment Systems Providers Association (NPSPA) together with VISA Uganda, Uganda Communication Communication ( UCC), Bank Of Uganda (BOU) and other stakeholders held their 2nd Fraud forum aimed at discussing how to strengthen collaboration against fraud in the banking and payment sub-sector.
The theme of the forum was: Collaboration against fraud targeted at the banking and payment services ecosystem. Building Resilience for today, tomorrow & beyond
According to the organizers, the forum specifically focused on strengthening the technological and regulatory frameworks to equip financial sector players to build resilience to deter fraud perpetrators. Follow our social media channels for live updates.
The Deputy Governor Bank Of Uganda Dr. Michael Atingi-Ego in order to unlock new opportunities geared towards positive growth, there is a need to utilize the energy of the youth by encouraging them to use software to address today’s challenges.
“Our technology talent is fueled by a growing interest in software development to address day-to day needs which unfortunately is sometimes mis-directed towards harmful activities quite often with the help of more sophisticated partners and as leaders we must position Uganda’s economy for positive digital economic growth, channel the energy and harness the talent of these young people to instead unlock new opportunities that bring about national development,” he said.
The Chairman UBA and CEO of Post Bank Uganda, Mr. Julius Kakeeto the growth of fraud in the bank and payment system has been driven by various factor including Increased rollout and adoption of digital financial services supported by the internet of things, Socio-economic factors such as the high unemployment and ingrained corruption, Inadequate collaboration between financial institutions, stakeholders among others.
“Growth in bank & payment services-related fraud has been driven by several factors such as: Increased rollout and adoption of digital financial services supported by the internet of things which have increased the threat landscape exploited by fraudsters in Uganda because of the low levels of digital & cyber security awareness of customers, Socio-economic factors such as the high unemployment and ingrained corruption at different strata in society coupled with the attractiveness to participate in fraud brought about by more sophisticated fraudsters who invest in this trade, Inadequate collaboration between financial institutions, stakeholders and law enforcement agencies domestically, regionally and internationally and yet borders have become virtual enabling criminals to perpetuate fraud and cashout from anywhere in the world” he said
He called for continuous engagement with stakeholder to mitigate the effects of the vice.
“Like in any other sector, fraud poses a significant threat to the stability and integrity of Uganda's banking and financial services sector. As fraudulent activities continue to evolve and become increasingly sophisticated, it is imperative for key stakeholders to regularly come together to confront this challenge” he said.
SSP Isaiah Igumira said “We should be able to avoid collisions and lack of supervision though this forum should not be aimed at pointing fingers but rather working together to see how fraud can be prevented.”
The inaugural fraud forum was held in March 2023 where key insights were provided by various resource persons from both within the industry as well as outside the industry including partners in the payments space, legal fraternity, investigative & enforcement arms of government as well as speakers from other jurisdictions including the Stanbic fraternity from Nigeria who shared their experience on combatting fraud as the financial services industry.
Uganda Bankers’ Association has developed and adopted the Banking Industry Guidelines to Mitigate Fraud (BIGF). Key objectives of the BIGF are to establish clear and standardized procedures for reporting fraud incidents within the financial services sector, facilitate the sharing of relevant information among financial institutions to block the movement of such funds, expedite investigations, and mark list such fraudsters, Developed minimum technology and digital financial services integration guidelines for interfacing with Bank systems & service channels, Participated in sessions to continuously sensitize the public on digital or electronic fraud, empowering them with skills and information to protect them from being victims of fraudulent activities like the Beera Steady Campaigns and other achievements.
