Ugandan Central Bank loses $16Million to hackers in alleged insider collusion

Uganda’s central bank has fallen victim to a massive cyber theft, with hackers reportedly siphoning off 62 billion Ugandan shillings ($16.8 million).

Authorities suspect insider collusion in the high-profile breach, which has raised serious concerns about the nation’s banking security measures.

The hacking group, identifying itself as “Waste,” infiltrated the Bank of Uganda’s IT systems earlier this month, transferring funds to offshore accounts, including some reportedly in Japan.

The group is believed to operate out of Southeast Asia, according to sources cited by the New Vision, a state-owned newspaper.

In a partial recovery, the central bank has managed to reclaim over half of the stolen funds, while efforts to retrieve the remaining money continue.

President Yoweri Museveni has directed the Auditor General to launch an investigation into the incident to ascertain the level of collusion, if any, and recommend measures to prevent such breaches in the future.

Insider collusion under scrutiny

Independent audits and preliminary findings by security agencies suggest that the theft could have been facilitated by insiders within the Bank of Uganda, the Ministry of Finance’s Treasury Department, and the Accountant General’s Office. Sources quoted in the Daily Monitor described the breach as likely an “inside job,” an angle reinforced by the ongoing investigations.

The incident is not an isolated case in Uganda, as cyber thefts targeting banks, financial service providers, and telecom firms have become increasingly common. However, experts note that banks are often reluctant to publicise such incidents due to fears of damaging customer confidence.

Call for enhanced security measures

This latest breach underscores the urgent need to strengthen cybersecurity measures across Uganda’s financial institutions. “President Museveni instructed the Auditor General to investigate the matter,” reported PMIdaily.com. The findings are expected to determine the total financial loss and assign criminal liability where necessary.

With over half of the stolen money recovered and investigations underway, this incident highlights vulnerabilities in Uganda’s financial systems and the critical need for robust safeguards to prevent future breaches.

For now, the Ugandan government and financial authorities face the challenge of restoring public trust in the banking system amidst concerns about systemic security flaws.

source: graphic.com.gh