Centenary Bank has recently addressed a concerning incident in which a client reported a loss of over sh100 million from her account earlier this week. The bank’s response to this situation sheds light on the details surrounding the incident.
The bank’s investigation revealed that the missing funds were a result of collaboration between an external fraudster and one of the bank’s staff members. The staff member initiated a PIN reset on the client’s account, which enabled unauthorized transactions at various agents and led to the withdrawal of funds from the customer’s account.
In a statement, the bank announced that it had promptly refunded the client and was actively exploring avenues to recover the missing funds. The bank also encouraged its clients to report any suspicious transactions or messages to the bank for verification.
The bank stated, “We have discovered that there was collusion between a fraudster and one of our staff to initiate a PIN reset, enabling transactions at various agents, resulting in fund withdrawals.” In line with its zero tolerance for fraud policy, the bank has taken disciplinary action against the staff member involved. Additionally, the case has been reported to the police, who are currently handling the investigation related to the fraudster.
During the Annual Bankers Conference organized by the Uganda Bankers Association in Kampala, Ronald Azairwe, the Managing Director of Pegasus Technologies, highlighted that collusion emerged as a significant contributor to fraudulent activities within the financial ecosystem.
