Hackers Steal $17 Million from Uganda’s Central Bank

Hackers have reportedly stolen $17 million from the Central Bank of Uganda in what authorities suspect to be an inside job. The sophisticated cyberattack has raised serious concerns about the security of financial institutions in the country. Reports indicate that the funds were transferred to accounts in foreign banks, including one in Japan, which allegedly declined to block the suspicious transactions.

The breach, initially revealed by local media, has drawn widespread attention, with many questioning the adequacy of cybersecurity measures in Uganda’s financial system. The hackers, identified as the group “Waste,” exploited vulnerabilities in the bank’s systems to execute the heist. While investigations are ongoing, preliminary findings suggest the possibility of insider involvement, making the case even more complex.

The stolen funds were transferred to multiple foreign accounts, making recovery efforts challenging. Uganda’s Financial Intelligence Authority is collaborating with international agencies to trace and retrieve the money. However, the reluctance of some foreign banks to freeze the funds has complicated these efforts. A Japanese bank cited legal limitations as its reason for not acting on Uganda’s request to block the stolen money.

The incident has sparked debates about the readiness of African financial institutions to combat increasingly sophisticated cyber threats. Experts emphasize the need for comprehensive cybersecurity strategies, regular audits, and robust internal controls to safeguard national assets.

In response to the theft, the Bank of Uganda has assured the public that measures are being taken to prevent future breaches. The central bank noted that customer deposits and reserves are not affected by the incident, as the stolen funds were part of its operational resources.

This cyberattack is not the first to target Uganda’s financial sector, but it is among the most significant in terms of monetary loss. It highlights the growing vulnerabilities of financial systems in the digital age and the need for increased investment in cybersecurity.

The revelation has drawn criticism from various quarters, including lawmakers, who are demanding greater transparency and accountability from the central bank. They argue that lax security protocols and possible collusion have allowed such a major breach to occur.

As the investigation continues, the incident serves as a wake-up call for institutions across Africa to prioritize cybersecurity and enhance their defenses against evolving digital threats.