Ugandans and businesses in 2024 lost USD272 mn in economic crimes; cybercrime, bank, and fraud double Uganda is grappling with a surge in financial crimes, with cyber fraud, bank scams, and corporate misconduct costing the economy over USD 272 million in 2024. As digital threats escalate, criminals exploit loopholes, leaving victims with devastating financial losses.

Even though the number of financial and economic crimes rose mildly, by 1.6%, from 12,924 cases in 2023 to 13,132 cases in 2024, the severity and amount of money lost in these crimes grew more significantly.

According to the Uganda Police Annual Crime Report 2024, total financial losses due to economic crimes surged past UGX 1.02 trillion (USD272 million), up from UGX 930.49 billion in 2023. However, financial losses associated with these crimes grew by 16.4%, escalating from UGX 930.5 billion in 2023 to UGX 1,082.7 billion in 2024, indicating that while the number of cases increased, the severity of financial losses worsened. 

The surge in cybercrime, bank fraud, and corporate financial misconduct signals a growing crisis. Criminals are leveraging digital vulnerabilities and systemic loopholes to siphon billions. The most affected sectors include banking, real estate, and corporate institutions, where fraudsters exploit weaknesses in financial transactions and documentation.

Crimes with the Highest Financial Losses

Obtaining by False Pretenses remains the most financially devastating crime, accounting for UGX 474.7 billion in 2024, though this marks a 34.4% decrease from UGX 723.5 billion in 2023. The number of cases under this category also slightly declined from 10,709 to 10,449.

Forgeries and Uttering of Documents saw an exponential increase in financial losses, jumping from UGX 0.58 billion in 2023 to UGX 74.2 billion in 2024, despite only a minor rise in the number of cases (868 to 894 cases). This suggests that the scale and impact of individual fraud cases increased significantly.

Cybercrime (Computer Crimes) saw the highest percentage increase in losses, skyrocketing from UGX 1.5 billion in 2023 to UGX 72.1 billion in 2024, representing a 4,700% increase. The number of cybercrime cases also nearly doubled from 245 to 474, highlighting the growing threat of digital fraud.

Causing Financial Loss, which includes fraud in government and corporate institutions, saw a decline in financial losses from UGX 94.1 billion in 2023 to UGX 79.2 billion in 2024. Still, the number of cases increased from 49 to 76.

Other Economic Crimes, a broad category encompassing various frauds, saw a massive spike in losses from UGX 0.84 billion in 2023 to UGX 295.2 billion in 2024, despite only a moderate increase in cases from 149 to 231.

The fastest-growing economic crimes in terms of the number of cases reported were abuse of Office, which more than doubled from 42 cases in 2023 to 101 cases in 2024, reflecting heightened scrutiny of public officials, and land fraud, which increased from 289 cases in 2023 to 397 cases in 2024, suggesting ongoing challenges in Uganda’s real estate and land registration processes. 

Cybercrime in Uganda: A Deepening Crisis in 2024

Cybercrime in Uganda has reached alarming levels, with reported cases nearly doubling from 245 in 2023 to 474 in 2024, marking a 93.5% increase. The financial implications of this rise have been severe, with losses amounting to UGX 72.1 billion, making cyber fraud one of the most costly economic crimes in the country. Despite intensified efforts by law enforcement agencies to curb these offences, only UGX 420 million was successfully recovered, leaving many victims with irretrievable financial losses.

The Annual Police Report on Crime for 2024 identifies several key tactics used by cybercriminals. Among the most prevalent methods is phishing and social engineering, where fraudsters send deceptive emails, text messages, or calls to trick individuals into sharing sensitive financial information. This has led to numerous cases of unauthorized financial transactions. Hacking and data breaches have also become widespread, particularly targeting financial institutions, mobile money platforms, and corporate databases, where criminals gain access to confidential customer data.

Another rising trend is SIM card swapping and mobile money fraud, where criminals manipulate telecom networks to take control of victims’ mobile money accounts. This has facilitated unauthorised withdrawals, leaving many individuals financially crippled. The report also highlights the increase in fake online investment and cryptocurrency scams, which lure unsuspecting Ugandans into fraudulent trading platforms under the guise of promising returns, only for them to lose their funds.

The Kampala Metropolitan Area (KMP) recorded the highest number of cybercrime incidents, given its high internet penetration rate and the presence of major financial institutions. However, prosecuting cybercrime cases remains a significant challenge due to the complexity of digital fraud. Out of the 474 cases reported in 2024, only 67 made it to court, while 97 were dropped due to insufficient evidence. A staggering 310 cases remain under investigation, and only 21 resulted in convictions, underscoring the legal system’s struggle to effectively address this growing threat.

The financial impact of cybercrime continues to escalate, with losses far outpacing recovery efforts. The UGX 72.1 billion lost in 2024 reflects a sharp increase from previous years, indicating that fraudsters are becoming more sophisticated. The financial sector, particularly banks and mobile money operators has borne the brunt of this crisis, with limited success in recovering stolen funds.

Analysis of Bank and Other Corporate Frauds (2023-2024)

Bank and corporate frauds in Uganda more than doubled in 2024, with reported cases rising from 43 in 2023 to 90 in 2024, representing a 109% increase. Despite this surge in fraudulent activities, the total financial losses associated with these crimes significantly dropped, declining from UGX 87.7 billion in 2023 to UGX 5.3 billion in 2024, indicating that while the number of fraudulent cases grew, the scale of individual fraud transactions was relatively smaller. 

The dramatic reduction in financial losses from UGX 87.7 billion in 2023 to UGX 5.3 billion in 2024 suggests that high-value fraud cases may have been better prevented or mitigated through strengthened banking regulations and internal controls. It may also suggest presence of increased awareness and tighter fraud detection mechanisms may have limited the scope of individual fraudulent transactions. The fraud landscape may have shifted towards smaller-scale but more frequent fraudulent activities, such as employee theft, false loan applications, or account manipulation.

The Uganda Bankers’ Association has recently doubled down on fighting fraud.  

Despite the decline in overall losses, recovery rates improved, with UGX 249 million retrieved in 2024, compared to UGX 35 million in 2023. This marks a 611% increase in funds recovered, possibly due to enhanced legal action and improved forensic financial tracking . However, this still represents a very small fraction of the total losses, indicating that once fraud occurs, reclaiming stolen assets remains a major challenge. 

Analysis of Cybercrime and Fraud from the PwC Global Economic Crime and Fraud Survey 2024 – Uganda

The PwC Global Economic Crime and Fraud Survey 2024 – Uganda highlights cybercrime as the second most prevalent form of economic crime in Uganda, affecting 37% of organizations surveyed. This marks a significant jump from previous years, aligning with global trends where cybercrime is now ranked as the most experienced form of economic crime at 44% globally. The report attributes this surge to technological advancements, increased digital transactions, and evolving cyber threats such as phishing, identity theft, and ransomware attacks .

Fraud, in general, remains a persistent challenge, with 63% of Ugandan organizations reporting incidents of economic crime in the last 24 months. This is higher than the Eastern Africa and global averages of 48% and 41%, respectively. Customer fraud, involving account takeovers, fake customer profiles, and credit fraud, was reported as the most common form of economic crime, with 40% of organizations affected. The report also notes that cybercrime and customer fraud were considered the most disruptive, with 37% of respondents ranking them highest in terms of financial and reputational damage.

The survey underscores a growing concern among CEOs, with 28% citing cybercrime as a top threat, up from 22% in 2023. In response, organisations are adopting fraud risk management programs, with 64% of Ugandan businesses conducting enterprise-wide fraud risk assessments and 29% leveraging data analytics to detect anomalies. Despite these measures, only 27% use technology effectively for compliance monitoring, highlighting a gap in proactive cybersecurity and fraud prevention strategies.

With cyber threats evolving, the report recommends a multi-faceted approach to fraud mitigation, emphasising stronger cybersecurity frameworks, artificial intelligence-driven fraud detection, and continuous monitoring of digital transactions. As Uganda’s digital landscape expands, businesses must prioritise cyber resilience to protect financial assets and maintain consumer trust.