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Equity Bank has commenced investigations into potential fraudulent activities related to its stock loan and agent float financing services. Concerns have been raised by customers, particularly those utilizing mobile banking services, who have reported unauthorized withdrawals from their accounts allegedly due to PIN resets conducted by unauthorized individuals.
In response to these allegations, Equity Bank issued a statement dated March 7, 2024, acknowledging the possibility of fraud within its services and confirming the initiation of investigations into the matter. The bank revealed that approximately Shs 65 billion of its loan portfolio, accounting for 1.8% of Equity Bank Uganda’s total assets, is currently under scrutiny.
The bank has taken proactive measures to collaborate with relevant stakeholders, including staff and customers, to support law enforcement agencies in their investigations. Amidst these ongoing investigations, Equity Bank has reiterated its commitment to upholding the highest standards of accountability and transparency.
Equity Bank affirmed its dedication to addressing any misconduct identified during the investigations, emphasizing that individuals found responsible for fraudulent activities will be subject to disciplinary actions in accordance with the organization’s policies, procedures, ethical values, and relevant legal provisions.
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Furthermore, the bank reassured its customers regarding the safety and security of their deposits across all branches and service outlets nationwide. It emphasized the board of directors’ and management’s commitment to swiftly resolve the matter and maintain focus on its mission of transforming lives, preserving dignity, and expanding opportunities for wealth creation.
Uganda has witnessed a surge in financial fraud cases, resulting in significant losses for many customers. According to the Financial Intelligence Authority (FIA) report released in June 2022, cyber fraud constitutes over 50% of high-value fraud cases under investigation, contributing to annual fraud losses.
In response to this growing threat, the Uganda Bankers’ Association (UBA), led by Chairperson Sarah Arapta, has been working collaboratively with stakeholders to develop a comprehensive legal framework aimed at preventing, deterring, and addressing financial fraud within the sector. Arapta highlighted the importance of stringent measures, including harsher penalties for convicted fraudsters, to safeguard the integrity of the financial system and protect customers from potential harm.
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