Following a wave of public complaints on social media about mobile money thefts, the Bank of Uganda (BoU) Governor, Michael Atingi-Ego, has issued a statement to address the growing concern among Ugandans.
The rise in mobile money fraud, including cases of SIM card fraud, phishing, and agent-driven scams, has become a significant threat to financial trust and digital inclusion in Uganda.
In a formal notice released today, Governor Atingi-Ego clarified the official process for victims seeking redress, urging them to use proper channels rather than relying on social media to air their grievances.
The Official Reporting Process
Governor Atingi-Ego’s statement emphasises a two-step approach for anyone who believes they have been defrauded.
The first and most crucial step is to report the matter directly to your mobile money service provider. This, according to the Governor, is the initial and most effective way to address the issue, as service providers have the systems in place to investigate and resolve transaction-related complaints.
If a customer is not satisfied with the response from their mobile money provider, the governor’s notice directs them to escalate the issue to the Bank of Uganda.
This is particularly important for cases concerning broader mobile money operations and not just a single transaction. The Governor noted that the BoU, as the regulator of Uganda’s financial system, is responsible for ensuring that service providers adhere to consumer protection guidelines.
Problem with Social Media Complaints
The governor’s statement sheds light on a key disconnect: “The Bank is not aware of any unresolved complaints raised through the proper channels.”
This indicates that while public outcry is visible on platforms like social media, official complaints that follow the established process may not be reaching the Central Bank.
The Governor revealed that the BoU’s Director of Communications and Public Relations, as well as the Director of National Payments Systems, are designated points of contact for these escalations.
It is important to note that this Central Bank statement is a clear call to action for customers to utilise the official channels, so as to provide the BoU with the necessary data to investigate, hold providers accountable, and work towards systemic solutions.
Protecting Financial Inclusion
Mobile money has been a powerful engine of financial inclusion in Uganda, providing millions with access to financial services without needing a traditional bank account.
However, the rise in fraud, which led to an estimated Shs19.2 billion in losses in 2022 alone, threatens to erode the public trust that this system is built on.
Without a transparent and effective system for resolving complaints, users may lose confidence and revert to cash-based transactions, which would be a significant setback for the country’s digital economy.
The BoU’s statement is therefore not just a procedural directive; it’s a critical effort to maintain trust and ensure the long-term sustainability of mobile money services in Uganda.
However, our efforts to secure a comment from the two top mobile money dealers in Uganda were futile as our calls to their offices went unanswered.