Uganda’s Central Bank Hacked: Hackers got away with $16.8 Million

 

In a significant cybersecurity breach, Uganda’s central bank fell victim to hackers who illicitly accessed its accounts, prompting concerns about the nation’s financial system's resilience. While the extent of the losses has been downplayed, the incident has raised questions about digital security in critical institutions.

The Hack Unfolds

The Bank of Uganda confirmed the hack late last week, following reports that offshore cybercriminals had stolen 62 billion Ugandan shillings (approximately $16.8 million). The state-owned New Vision newspaper attributed the attack to a Southeast Asian hacking group called “Waste,” which infiltrated the bank’s IT systems earlier this month.

While State Minister for Finance Henry Musasizi acknowledged the breach, he insisted the losses were less severe than reported. “It is true our accounts were hacked into, but not to the extent of what is being reported,” Musasizi said, addressing parliament. Investigations by the police’s Criminal Investigations Department (CID) and the Auditor General are ongoing.

The Recovery Effort

According to New Vision, over half of the stolen funds have already been recovered, though some money was allegedly transferred to Japan. Sources within the central bank hinted at potential insider collusion, a claim echoed by Uganda’s Daily Monitor, the country’s largest independent newspaper.

Minister Musasizi urged patience, assuring lawmakers that a comprehensive audit report would be shared once investigations are concluded.

Cybersecurity: A Growing Challenge

This isn’t Uganda’s first encounter with cyber theft. The country has seen repeated cases of financial service providers, including banks and telecom firms, falling prey to hackers. Many institutions remain hesitant to disclose such breaches, fearing damage to customer confidence.

The Bank of Uganda’s experience underscores the urgent need for robust cybersecurity measures. It also highlights the increasing sophistication of hacking groups operating globally, often with insider assistance.

Lessons and Moving Forward

This incident serves as a wake-up call for financial institutions to strengthen digital safeguards, educate employees about cybersecurity risks, and develop rapid-response protocols for breaches. Public trust in the banking system depends on the perception of security, and transparency in addressing these challenges is critical.

Final Word

As investigations continue, the Bank of Uganda’s breach offers valuable lessons for other nations and financial institutions. In an increasingly interconnected world, no system is immune to cyberattacks, but vigilance and preparation can minimize losses and ensure swift recovery.

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This report is based on information from Reuters, with additional insights from Uganda’s leading newspapers, New Vision and Daily Monitor.