The Bank of Uganda (BOU) has issued a warning about the increasing threat of Artificial Intelligence (AI) generated fraud, stating that it is unable to fully protect individuals from such crimes. The warning comes amidst a surge in fraudulent activities, particularly within the financial technology (Fintech) sector, over the past decade, affecting major global banking and financial institutions.
During a symposium held in Kampala on February 13, 2024, Dr Tumubweinee Twinemanzi, the executive director for supervision at the Bank of Uganda, emphasized the importance of vigilance against fraud in the era of rapid technological advancements and digitization. He acknowledged that while the central bank cannot shield individuals from AI-generated fraud, it aims to equip them with information to safeguard themselves against such threats.
Dr Twinemanzi underscored the role of awareness and individual responsibility in combating fraud, stating, “No one can protect you against technology. You protect yourself by making yourself aware of the technology you are using.” He highlighted the bank’s commitment to ensuring financial stability and combating fraud through various measures.
The executive director outlined the bank’s forthcoming initiatives, including the issuance of cybersecurity guidelines to the industry to help manage fraud risks and cyber threats effectively. Additionally, he emphasized the importance of financial institutions assessing their internal capital adequacy and implementing appropriate measures to mitigate fraud risks.
