Uganda’s financial sector is taking a decisive stand against the escalating threat of economic crime, recognising that the battle must be fought on two separate fronts: the enduring challenges of traditional fraud and the rapidly evolving complexities of the digital frontier.
This dual approach was the main focus of discussion at the 3rd Financial Sector Anti-Fraud Forum, hosted by the Uganda Bankers’ Association (UBA) at Mestil Hotel in Kampala, on Tuesday, October 21, 2025.
Under the theme, “Confronting financial sector fraud: Building resilience through collaboration across traditional and non-traditional (digital) frontiers,” industry leaders, technology experts, and regulators convened to forge a unified, resilient defense for the nation’s economy.
Old Playbooks Meet Cyber Threats
The forum’s discussions centered on the reality that financial institutions are grappling with a dual threat:
The Old Playbook
This takes the form of persistent, familiar crimes like loan fraud, identity theft, and insider collusion, which continue to drain resources and undermine institutional integrity. These crimes often exploit the “human element” within institutions.
The New Battlefield
The accelerated digitalisation of services, although boosting financial inclusion, has created fertile ground for cyber-enabled crimes. These include sophisticated attacks like phishing, SIM swap fraud, and ransomware, which require advanced technological countermeasures.
As the UBA emphasised, failure to address these threats does not just cause institutional losses; it erodes public trust, undermines the financial inclusion agenda, and weakens investor confidence, posing a risk to the nation’s stability and growth.
AI as a Digital Weapon Against Fraud
A highlight of the forum was the powerful keynote address delivered by Prof. Arthur G.O. Mutambara from the University of Johannesburg, who outlined the transformative role of Artificial Intelligence (AI) in the fight against fraud.
Prof. Mutambara spotlighted cutting-edge AI tools that are now essential for driving detection and prevention across digital financial systems, which include:
Machine Learning (ML) and Deep Learning (DL): Used to analyse massive datasets in real-time to identify and model complex, previously unseen fraudulent patterns.
Natural Language Processing (NLP): Critical for analysing communications and detecting sophisticated phishing or social engineering attempts.
AI-driven Anomaly Detection: Systems that flag unusual transactions or behaviours instantly, often stopping fraud before it is executed.
“It is time to embrace innovation, data, and cross-sector collaboration in building fraud-resilient ecosystems,” Prof. Mutambara concluded, stating that technology is not just a tool, but a crucial pillar of the sector’s long-term strategy.
Building Resilience with a Three-Pillar Strategy
Recognising that collaboration is non-negotiable, the forum outlined a clear, zero-tolerance strategy for the sector, focusing on three interdependent pillars, which include:
Investment in Technology and Data
Institutions were urged to move beyond conventional security measures and leverage the power of AI and machine learning to detect and model fraudulent patterns in real-time. This includes investing in systems that secure digital platforms against the constantly evolving tactics of cybercriminals.
Empowering People and Creating Awareness
The human element is a critical vulnerability. The sector must prioritise continuing education and empowerment for staff, customers, and the general public. This includes boosting digital awareness to counter insider collusion and to equip customers with the knowledge and skills to protect themselves from scams like SIM swap fraud and phishing.
Strengthening Legal and Enforcement Frameworks
To ensure that vigilance pays off, the forum observed that the financial sector must work closely with the Judiciary to implement stronger deterrent penalties. This is paired with the need to enhance the capacity of law enforcement to investigate and successfully prosecute complex financial and cybercrimes, creating a credible legal threat that deters perpetrators.
Stanbic Bank Uganda Chief Executive Officer, Kenneth Mumba Kalifungwa, summarised the collective commitment, stating, “Through shared insights and collaboration, we remain committed to safeguarding trust and strengthening the integrity of Uganda’s financial system.”
The message from the UBA forum is clear: to ensure the stability and growth of the nation, the financial sector must break down internal walls, share intelligence, and forge a united, resilient front against all forms of financial crime, now and in the digital future.