Uganda loses Shs4b in digital fraud annually, says Baryomunsi

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Uganda loses Shs4b in digital fraud annually, says Baryomunsi
Dr Chris Baryomunsi

The central bank has now called for licensing of mobile agents by respective telecommunication companies arguing that this will help in tackling fraud.

KAMPALA | The government has called for the reduction in the cost of smartphones and internet to bridge the digital gap and literacy and help cut down on financial losses.

The Bank of Uganda and other industry captains in the financial sector say this is a major bottleneck to Ugandans from adopting digital financial services.

Currently Ugandans lose about Shs4 billion in digital fraud across different financial sectors, IC minister Chris Baryomunsi Says.

The future of digital financial institutions remains a major concern of sector players given the about Shs4 billion is lost in digital fraud.

Financial institutions, industry captains in the financial sector and Ministry of ICT have now embarked on finding solutions to the problem.

The central bank has now called for licensing of mobile agents by respective telecommunication companies arguing that this will help in tackling fraud.

“We need licence from all telecoms for their agents, this will end the high cases of fraud but also be vigilant,” Mackay Aumo, the director National Payment System at Bank of Uganda, said.

Given complaints of the high cost of the internet the government says it is extending optic fiber to over 60 districts across the country.

We as government we are extending optic fiber to 60 districts across the country. We need everyone to adopt the digital direction," Dr Baryomunsi said.

According to the quarterly financial stability review released by the central bank in 2023, the largest share of digital payments was recorded for the year ended 2023 at a growth of 22%, with the number of digital payment transactions increasing from 2.74million in 2022 to 3.34million in 2023.

Last year banks invested over 300 billion shillings in IT to try and curb the rising financial fraud.

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