CID summons bank manager in electronic fraud investigation

BANKING | The Criminal Investigations Directorate (CID) has summoned Absa Bank management to help with investigations into electronic fraud transaction in its system.

Superintendent of Police Joel Ntabu, a CID officer at Central Police Station in Kampala, on April 18 directed Absa Uganda director of retail banking, Mr Musa Jallow, to appear before a detective tomorrow (Tuesday, April 23).

SP Ntabu said in the April 18 summonses that the CID were investigating a case of electronic fraud involving a matter logged by Absa Bank under reference 23778598.

"You are required to report to the Central Police Station Kampala on April 23 at 10am to conference on valuable and relevant information, exhibits or documents in regard to the above allegation," SP Ntabu said.

The bank is understood to have reported a suspected fraudulent transactions on account no. 6007916351 in the names of Andrew Musimenta.

SP Ntabu did not give the detail of the case and Mr Godfrey Opito, the detective handling the case at CPS in Kampala, said he was not at liberty to divulge the detail to the media.

However, he confirmed he was expecting Absa Bank team for the 10am interface tomorrow.

Sources told the Nile Post that the electronic fraud involves "huge withdrawals" from Mr Musimenta's account, transactions he denies undertaking.

The Nile Post could not immediately ascertain the financial figures while it also remains unclear why it is the bank that reported the alleged fraud to CID instead of the customer.

Ms Robinah Mukasa Kamuntu, head of communication and customer experience at Absa Bank, on Monday evening shared an official statement in which the bank said it was unable to comment on individual customer cases due to strict confidentiality standards.

"Absa Bank Uganda digital banking channels employ advanced security measures including multi-factor authentication, biometric login options, and encryption," the statement said.

"All bank transactions are subject to rigorous monitoring for suspicious activities."

As if to hint on the nature of the alleged electronic fraud, the bank said it continually reminds its customers of the importance of protecting their personal information, including safeguarding against unauthorised access to bank cards and personal devices.

"We would like to further clarify, that self-registration onto our online platforms requires input and verification of personal information including but not limited to the clients account number, National Identification Number, date of birth and access to the registered phone number," it added.

The local banking sector has been shaken lately with another Shs65 billion loan financing fraud at another bank currently being investigated.

Absa, formerly Barclays Bank, was founded in 1991 and is headquartered in Johannesburg, South Africa.

It is a subsidiary of Absa Group Limited, with operations in 12 African countries and representative offices in two other African countries.

In April last year, Absa Bank released its financial results for the year ended December 2022 in which it indicated that its profits grew by 28.9 percent.

The bank’s profit after tax grew to Shs141 billion attributed to a 12.5 percent growth in revenue by Shs46 billion.

Last August, the bank reported that its customer numbers grew 4 percent to 11.8 million (globally) in the first quarter of 2023.

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Absa Bank Uganda statement

We are aware of the ongoing online conversations regarding bank to wallet transactions disputed by one of our customers.

Absa Bank Uganda is unable to comment on individual customer cases due to strict confidentiality standards. However, we wish to assure the public that Absa Bank Uganda strives to maintain the highest standards of customer service in all our engagements with customers and takes the investigation of disputed transactions very seriously.

The safeguarding of our customer information is our highest priority as is the security of our digital banking channels. Absa Bank Uganda digital banking channels employ advanced security measures including multi-factor authentication, biometric login options, and encryption. All bank transactions are subject to rigorous monitoring for suspicious activities.

In addition, we continually remind our customers of the importance of protecting their personal information including safeguarding against unauthorised access to bank cards and personal devices.

We would like to further clarify, that self-registration onto our online platforms requires input and verification of personal information including but not limited to the clients account number, National Identification Number, date of birth and access to the registered phone number.

Absa Bank is committed to providing cutting edge digital solutions for our customers and is invested in delivering continuous enhancements and innovations with the aim of providing a secure and seamless banking experience.

Our communication channels remain open, and we encourage our customers to contact us for any concerns or support.

Management.