Bank of Uganda urged to address rising bank fraud cases

The call was made by the National Economic Empowerment Dialogue (NEED) party, which urged the Bank of Uganda to hold commercial banks accountable for the money losses customers are experiencing every now and then.

Experts say bank fraudsters can take several forms, including the manipulation of checks, the counterfeiting of cards, the skimming or cloning of cards, and the unauthorised withdrawal of funds from clients' accounts.

A variety of legislation has been enacted in Uganda to combat bank fraud, yet the crime is on the rise.

Speaking to the media on Monday, October 23, 2023, at the party's headquarters, NEED spokesperson Moses Matovu urged the Bank of Uganda to guarantee that all regulations approved for customer protection are enforced.

He also encouraged the central bank to take disciplinary action against commercial banks involved in fraud for failing to control their internal staff, who reportedly coordinate with outside criminals to ensure the success of their operations.

“We have our people in the diaspora sending their money because of mistrust among their relatives, so they put the money in the bank. Unfortunately, when they come to check on how much they have, they find that half of the money has disappeared,” Matovu said on Monday.

Matovu implored Parliament to raise a voice over this increasing vice, while the Consumer Protection Unit is also tasked with doing its work.

This new development comes against the backdrop of quite a number of reported cases of fraud against bank customers.

The latest fraud incident involved a man who banked with Equity Bank and lost over Sh10 million. This incident can be known publicly after he made a video that went viral on social media as he vented out his frustration for the bank’s lack of securing his money.