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- 2nd Annual Financial Fraud Forum held in Kampala with leaders from Uganda's banking and financial institutions
- Emphasis on resilience and collaboration in combating the growing threat of cyber fraud
- Initiatives such as the Banking Industry Guidelines to Mitigate Fraud and the three KY Principles highlighted as crucial in mitigating fraud risks
- 2nd Annual Financial Fraud Forum held in Kampala emphasized the need for collaborative efforts to safeguard banking systems against cyber fraud
- Uganda Bankers Association highlighted the sophistication of fraudsters exploiting the digital landscape and the low levels of digital security awareness among customers
- Initiatives such as Banking Industry Guidelines to Mitigate Fraud (BIGF) and three KY Principles were underscored as crucial in combating fraud
In an era marked by rapid technological advancement, the specter of cyber fraud looms large over the financial sector, necessitating heightened vigilance and collaborative efforts to safeguard the integrity of banking systems. This was the resounding message at the 2nd Annual Financial Fraud Forum held at the Mesil Hotel in Kampala, where leaders from Uganda's banking and financial institutions convened to strategise against the growing threat of cyber fraud.
Julius Kakeeto, Chairman of the Uganda Bankers Association (UBA) and the primary organiser of the event, set the tone by emphasising the critical need for resilience and collaboration in combating fraud.
"Fraud poses a significant threat to the stability and integrity of Uganda’s banking and financial services sector," Kakeeto stated. He highlighted the increasing sophistication of fraudsters who exploit the digital landscape, exacerbated by the low levels of digital and cyber security awareness among customers.
The forum, themed “Collaboration against fraud targeted at the banking and payment services ecosystem,” aimed to strengthen the technological, regulatory, and legal frameworks essential for building resilience against cyber threats.
Over the past year, the UBA has initiated several key measures, including the development of the Banking Industry Guidelines to Mitigate Fraud (BIGF), which standardises procedures for reporting fraud incidents and facilitates the sharing of relevant information among financial institutions.
Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, also spoke at the forum, underscoring the multifaceted nature of financial fraud and its detrimental effects on the financial system's role in economic transformation. He emphasised the three KY Principles — Know your Customer, Know your Employee, and Know your Partner — as foundational strategies to mitigate fraud risks.
"Fraudsters often exploit human failures within the financial and payment systems," Atingi-Ego explained, stressing the importance of a holistic approach that includes robust systems and stringent internal controls.
Hon Nyombi Thembo, Executive Director of the Uganda Communications Commission, addressed the changing landscape of digital threats.
"Where criminals once needed heavy tools to break into a bank, now all they need is your password," Thembo remarked, highlighting the imperative to adapt continuously to protect digital assets and prevent immense losses.
From neighboring Kenya, Eric Mugo, the Manager of Ethics and Compliance at Safaricom Kenya, shared insights into the utilisation of advanced technologies like machine learning to manage risks associated with cyber fraud.
"We have put in place proper governance structures to ensure that these technologies are not misused," Mugo noted, acknowledging the potential dual-use nature of such tools.
The forum not only focused on technological solutions but also on the human aspect of fraud prevention. It emphasised the importance of enhancing customer and public financial literacy as a critical first line of defence against fraud.