Equity Bank launches investigations into fraud claims

Equity Bank has launched an investigation into possible fraud involving agent float financing and stock loans.

Customers that used mobile banking services made up the majority of those impacted. They claimed that some dishonest people had been able to change their PINs and take money out of their accounts without their knowledge.

Equity Bank acknowledged the possibility of fraud in its services in a statement dated March 7, 2024, and stated they have started looking into the issue.

“The portfolio currently under investigation is approximately Shs65 billion out of a loan book of Shs1.9 trillion and is equivalent to 1.8% of Equity Bank Uganda total assets.” the statement by Equity reads in part.

Since then, the bank said, it has started working with a few of its employees and clients to support law enforcement in their investigations.

The bank has pledged to uphold the highest standards of transparency and accountability throughout the investigations.

“Any person found to be responsible, whether through fraud or errors of commission or omission will be dealt with in accordance with the policies, procedures and ethical values of the organisation, and where appropriate, the laws of the country,” the bank stated.

The bank went ahead to assure its customers of safety and security of their deposits across its branches and service outlets across the country.

“The board of directors and management are committed to resolving and concluding this matter and we continue to focus at all times on our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation.”

A surge in financial fraud cases has recently been reported in Uganda, costing numerous victims their hard-earned money.

In June 2022, the Financial Intelligence Authority (FIA) released a report stating that over 50% of high value fraud cases under investigation and annual fraud losses were related to cyber frauds.

In an effort to combat banking fraud, Sarah Arapta, the chairperson of the Uganda Bankers’ Association (UBA), disclosed last month that the organization was developing a legal framework for the prevention, deterrence, and remediation of the vice within the sector in collaboration with other stakeholders.

She pointed out that if the framework was accepted by the decision-makers, financial crime offenders would be subject to more severe penalties.