Inside Uganda’s Cybercrime Battle: How Sophisticated Syndicates Are Draining Billions

At the VISA-Uganda Bankers Association (UBA) Cybersecurity Summit 2025 held on August 20, 2025, at the Sheraton Hotel in Kampala, the Criminal Investigations Directorate (CID) delivered a sobering revelation: cybercrime is no longer a distant threat but a sophisticated, organised war against Uganda’s financial sector.

According to Uganda Police’s Annual Crime Report of 2024, the country lost over UGX 41 billion to cybercriminals—a figure investigators warn has likely soared this year as digital banking adoption expands. Deputy Superintendent of Police (D/SP) Bill Ndyamuhaki, a cybercrime investigator and forensic analyst with CID, painted a picture of well-coordinated adversaries who exploit both technology and human weaknesses.

“These syndicates operate with the efficiency of corporate entities, dividing roles among specialists in hacking, reconnaissance, social engineering, and cashing out,” Ndyamuhaki noted. “They exploit peak transaction times like month-ends and holidays, making detection and response even harder.”

From phishing schemes and SIM swap fraud to insider threats and malware attacks, the vectors of financial cybercrime have grown alarmingly diverse. Fraudsters often hijack dormant accounts or manipulate salary processing windows, while others leverage fake IDs to open fraudulent bank accounts. Supply chain breaches and exploitation of cloud-based systems are also on the rise, widening the battlefield.

A Case That Shook the Sector

Ndyamuhaki cited a recent case where an SFI (supervised financial institution) was compromised, leading to the loss of UGX 500 million. Over six months, fraudsters infiltrated internal systems, injected funds into a single account, and dispersed them across multiple forged accounts. The operation involved ATMs, mobile money agents, and even international withdrawals.

Investigations uncovered the role of an insider who had planted a keylogger device to facilitate the fraud. Although promised UGX 50 million and relocation abroad, the insider was betrayed by the very syndicate he aided. Coordinated efforts between banks and CID led to several arrests, though the court process remains ongoing.

The case underscored a painful truth: internal threats remain the Achilles heel of Uganda’s financial sector. “Device-level surveillance, stronger Know Your Customer (KYC) checks, and biometric verification at account opening are no longer optional—they are survival measures,” Ndyamuhaki emphasised.

CID also called for more collaboration between banks, regulators, and law enforcement to strengthen monitoring, share intelligence, and prosecute cross-border syndicates that often vanish across jurisdictions.

The recommendations included mandatory staff awareness training, adoption of multi-factor authentication, and constant auditing of systems. “Cyber resilience is not a one-off investment; it is a culture that requires vigilance from every stakeholder,” Ndyamuhaki stressed.

As Uganda embraces digital transformation, the threat landscape grows more complex. The battle against cybercrime, investigators warn, will not be won by technology alone but through vigilance, collaboration, and a recognition that cybercriminals—though invisible—are as organised as any legitimate multinational enterprise.

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