Uganda’s Central Bank has become the latest victim of cyber attack. The bank fell to a sophisticated cyber attack by hackers known as “Waste,” with the hackers illicitly transferring 62 billion Ugandan shillings ($16.8 million) from the central bank’s accounts in November.
According to government sources, the Southeast Asian hacking group accessed the bank’s IT systems and sent portions of the stolen funds to Japan. State Minister for Finance Henry Musasizi confirmed the breach while attempting to downplay the incident’s scale during a parliamentary session.
Investigations are currently underway, with the Criminal Investigations Department and Auditor General examining the details of the cyber theft. President Yoweri Museveni has personally ordered a thorough investigation into the incident.
The bank claims to have already recovered over half of the stolen funds. However, Daily Monitor, Uganda’s largest independent newspaper, suggests the possibility of insider involvement in the heist.
This attack is part of a growing trend of cyber threats in Uganda. In 2022, the country lost approximately $4 million to cyber-related incidents, with financial institutions being primary targets. Security experts warn that financial institutions are increasingly vulnerable to sophisticated cyber attacks.
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The incident highlights broader cybersecurity challenges in the region. Some banks reportedly hesitate to publicly acknowledge such breaches to avoid damaging customer confidence, and this has been counterproductive.
The Bank of Uganda has remained cautious, stating that they are awaiting a police report before making any definitive statements about the incident.
As investigations continue, this cyber attack serves as a stark reminder of the ongoing digital security challenges facing financial institutions in Uganda and across Africa, and also serves as a challenge for financial institutions to strengthen their cyber spaces against future incidents.
