The Bank of Uganda’s IT systems were hacked, leading to the theft of 62 billion Ugandan shillings ($16.8 million), Uganda’s finance ministry has confirmed. However, officials state the scale of the theft is smaller than initially reported.
Ongoing Investigations
State Minister for Finance, Henry Musasizi, addressed parliament on Thursday, revealing that investigations by the Criminal Investigations Department (CID) and the Auditor General are underway. “It is true our accounts were hacked into, but not to the extent of what is being reported. An audit and investigation are in their final stages,” Musasizi explained.
Hacking Group “Waste” Implicated
The state-owned New Vision newspaper reported that a hacking group known as “Waste,” believed to be based in Southeast Asia, executed the cyber attack earlier this month. Part of the stolen funds was reportedly transferred to Japan.
Partial Recovery of Stolen Funds
The Bank of Uganda has reportedly recovered over half of the stolen funds. In an emailed statement, the central bank neither confirmed nor denied the breach, stating it was “awaiting a police report.”
Suspected Insider Collusion
Sources cited by Uganda’s independent Daily Monitor newspaper suggest that insiders within the central bank may have colluded with the hackers, raising questions about internal security measures.
President Museveni Orders Thorough Investigation
President Yoweri Museveni has directed a comprehensive investigation into the attack, marking it as the latest in a string of cyber thefts targeting financial institutions and telecom firms in Uganda.
Rising Cyber Threats in Uganda
Security experts caution that financial institutions in Uganda face increasing cyber threats, exacerbated by limited public disclosure of such incidents. Many banks avoid revealing cyber breaches to protect customer confidence, leaving the full extent of vulnerabilities unclear.
A Wake-Up Call for Financial Security
This incident highlights the urgent need for stronger cybersecurity measures in Uganda’s banking sector to prevent future breaches and restore trust in financial institutions.
