By Alituha Aaron and Andrew Irumba Katusabe
Kampala: On Monday, Stanbic Bank Uganda convened a high-level Media Brunch at Onomo Hotel, Nakasero, Kampala, bringing together leaders from the banking sector, cyber-risk specialists, legal experts, and media practitioners to confront a growing and urgent threat: financial fraud, increasingly amplified by cyber crime and digital innovation.
What Came Out of the Brunch
Stanbic’s Kenneth Agutamba (Country Manager, Reputation & Corporate Communication) emphasized that fraud is not just a problem for individual banks, but a national one, affecting every customer, and that silence only empowers fraudsters. He called for sustained dialogue, not just one-off events.
Legal voices, including Candy Wekesa Okoboi (Head of Legal, Stanbic), warned that outdated laws are no match for tech-savvy criminals. She urged reform to close legal loopholes, prosecute fraudsters effectively, and better protect consumers.
From the industry side, Ronald Mugisha (Cyber & Fraud Risk Lead, Uganda Bankers’ Association) highlighted that the fight against fraud must be collective: “Banks, regulators, and social media influencers must work jointly … every fraudulent transaction erodes trust.” He raised particular alarm about ATM card-swapping scams, calling them deceptively simple but devastating in their impact.
Stanbic’s own Head of Fraud & Risk Management, Sophia Nakazibwe, pointed to an important dynamic: digital transactions are surging, but customer awareness of security is lagging — and it’s in that gap that fraudsters thrive.
As practical advice, experts urged customers to:
- Never share their PINs
- Reject unsolicited help at ATMs
- Always check their cards before leaving
- Report any suspicious activity (or loss of card/phone) immediately
The event closed with a unified call: for continuous awareness, stronger legal frameworks, and collective vigilance — all essential to safeguarding Uganda’s financial future.
The Bigger Picture: How Big Is the Fraud Problem in Uganda?
To understand why Stanbic’s initiative matters so much, it helps to look at the data and what other institutions are saying. Here’s a breakdown, based on the most recent publicly available information:
Key Statistics & Trends
- Police and Economic Crime
- According to the Uganda Police Force’s Annual Crime Report for 2024, there were 110 cases of “Bank and Other Corporate Fraud” reported.
- These represent about 0.8% of all economic crimes that year.
- The same report shows a variety of fraud types: money laundering, corporate fraud, terrorism financing, forgery, etc.
- Cybercrime Losses
- In 2024, cyber-criminals are reported to have stolen UGX 72.1 billion across 474 cyber-crime cases logged by police.
- Out of that, only UGX 420 million was recovered.
- From the 474 reported cases: 67 went to court, 21 resulted in conviction; 39 were pending by the time of the report.
- Bank Fraud & Reporting
- According to the newly formed Financial Sector Anti-Fraud Consortium (AFC), fraud is being treated as a systemic risk.
- The Uganda Manufacturers Association (UMA) also launched a Fraud Database Uganda to help companies share verified fraud cases, signaling that fraud prevention is increasingly cross-sector.
- According to a recent report seen by TheSpy Uganda, banks reported 716 fraud cases in 2024, down from 969 in 2023.
- However, ATM / POS / Card fraud saw a sharp rise: 413 cases in 2024 versus 218 in 2023 — an 89% increase.
- Loan-Related Fraud
- According to the Uganda Bankers Association (UBA), loan-related fraud has sharply increased: in the quarter ending June (year not fully specified but based on recent UBA data), it made up 46.5% of fraud cases — up from 23.3% earlier.
- UBA suggests that digital banking (card and mobile) fraud also rose, though in that same period it dipped slightly later.
- UBA and others warn of “connivance” between bank staff and fraudsters in some schemes.
- Regulatory & Institutional Risk Assessments
- The Financial Intelligence Authority (FIA) / national risk assessment (NRA) for 2023 identifies cyber-crime as high risk for money laundering / financial crime.
- In that NRA, they also document a case involving Stanbic Bank, Bank of Africa, MTN Uganda and Airtel, tied to SIM card fraud and fraudulent transfers. About UGX 5.5 billion was fraudulently disbursed.
- According to that report, nine suspects were arrested in that case.
- Public Awareness & Impact
- The Economic Policy Research Centre (EPRC) highlighted in early 2025 that while digital financial services are rapidly expanding (e.g., mobile money registration reached ~36.8 million in 2023), fraud awareness is not keeping up.
- They note that in 2023, only 245 cyber-crime cases were reported, and losses of ~UGX 1.5 billion were recorded, but only ~UGX 377.4 million recovered.
Arrests, Convictions & Legal Action
- In the 2024 cyber-crime data, 67 cases were taken to court.
- Of those court cases, 21 resulted in conviction; 7 were dismissed; 39 were still pending.
- On the regulatory/legal reform front, the Financial Sector Anti-Fraud Consortium (with backing from Bank of Uganda, law enforcement, and others) is pushing for tougher laws, better prosecution, and stronger coordination.
- According to the NRA by FIA, past cases (2017–2020) saw 860 cyber-fraud cases, with total loss over UGX 197.5 billion, but only UGX ~59.6 million was recovered.
- In one notable case flagged in that NRA report: SIM fraud involving Stanbic Bank, Bank of Africa, MTN, and Airtel resulted in UGX 5.5 billion lost.
Challenges & Gaps Highlighted by Experts
- Under reporting: Experts warn that the officially reported cases likely understate the true scale of fraud.
- Low recovery rate: Despite enormous losses, recoveries remain very low (as the data above shows).
- Legal loopholes: Current legislation is seen as inadequate to deter modern, tech-enabled fraud.
- Enforcement bottlenecks: Even when cases are reported, few make it to conviction; capacity constraints (e.g., in evidence sharing, specialized cyber-crime investigation) remain.
- Public awareness: Many customers lack digital security literacy. Fraud prevention is not just about technology, people need to know how to protect themselves.
Why Stanbic Bank’s Role Is Important
Given this context, Stanbic Bank’s leadership in hosting the media brunch is particularly significant:
- They are acknowledging the elephant in the room — the very real, growing threat of financial fraud in banks — rather than downplaying it.
- By bringing together multiple stakeholders (banks, regulators, legal experts, media), they are encouraging the kind of collective dialogue and ownership that experts say is necessary.
- Their public push helps increase consumer awareness, which is essential to prevention. When customers know the kinds of scams to watch out for — PIN sharing, unsolicited help, ATM manipulation — they can protect themselves.
- Stanbic is also signaling corporate responsibility: fraud is not just a cost, but a reputational risk, and one they are taking seriously.
- Finally, by advocating for better laws and stronger collaboration, Stanbic is using its influence to help shape systemic change, not just protect its own bottom line.
Conclusion & Outlook
- Fraud in Uganda’s financial sector is real and growing, especially in the digital domain: cyber-crime losses are massive, but recovery is limited, and legal enforcement is weak.
- The data from police, regulators, and banking institutions show that fraud is not just isolated incidents, but a systemic problem.
- Stanbic Bank’s brunch is a bold and necessary move: by championing awareness, collaboration, and reform, it is helping to drive the kind of multi-layered response that experts agree is needed.
- But the work doesn’t stop there: what’s required now is sustained action — more awareness campaigns, stronger laws, better enforcement, and active engagement between banks, regulators, law enforcement, and the public.
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