Foreigners are behind bank frauds
A Ugandan arrested on allegations of attaching spy cameras and a data collecting gadget in automated teller machines (ATMs) illegally to access clients’ data has told police that foreigners are behind the crime.
The suspect was arrested in Bwaise, a Kampala suburb, as he tried to remove a memory card from a Stanbic Bank ATM machine. This is the second case in the same bank this year.
Kampala Metropolitan Police spokesman Ibin Ssenkumbi told Daily Monitor that the suspects said Nigerians and “whites” are part of the racket behind the bank fraud.
“These foreigners are paying Ugandans to install the spy gadget and also withdraw the money from the banks. Among the people we are hunting for include whites,” Mr Ssenkumbi said yesterday.
According to a police report, the suspects open an ATM machine and insert a Personal Identification Number reader connected to a four gigabite memory card. They also attach a miniscule camera near the key board that records the password of their victims.
“After the memory card has captured the data of at least six to 10 clients, they remove it and process cards with the same information before withdrawing the money from the victims’ accounts,” Mr Ssenkumbi said.
The Ugandans are being paid $200 (Shs517,000) for every insertion in an ATM machine. It is not clear whether they deal with Stanbic Bank officials given the fact that it is the only bank issuing its own cards, but the bank’s communication manager Daniel Nsibambi last evening said they are aware of the fraud.
Bank frauds increasing
However, he said they have install devices to detect the fake cards inserted in their machines. Mr Nsibambi had earlier told Daily Monitor that they do not comment on the ATM incidents.
“For security reasons, we are unwilling to discuss specifics of the case,” Mr Nsibambi said.
However, Mr Ssenkumbi said issues of collusion with bank officials to fraud clients are part of their investigations.
“The bank told us that they have been losing a lot of money in such fraud. But we want other banks to come out and give us details of such fraud,” he said.
Bank fraud is on the increase and many clients are losing money but many banks don’t want to reveal the information to the public.
Last week police arrested five people, including bank officials from Equity and Fina Bank, who were allegedly involved in illegal money transfer from clients’ accounts. The same group allegedly defrauded Barclays Bank of Shs125m and Shs150m from Orient Bank.
Early this year, Orient Bank lost more than Shs880m while Stanbic lost Shs787m to fraud.
A Ugandan arrested on allegations of attaching spy cameras and a data collecting gadget in automated teller machines (ATMs) illegally to access clients’ data has told police that foreigners are behind the crime.
The suspect was arrested in Bwaise, a Kampala suburb, as he tried to remove a memory card from a Stanbic Bank ATM machine. This is the second case in the same bank this year.
Kampala Metropolitan Police spokesman Ibin Ssenkumbi told Daily Monitor that the suspects said Nigerians and “whites” are part of the racket behind the bank fraud.
“These foreigners are paying Ugandans to install the spy gadget and also withdraw the money from the banks. Among the people we are hunting for include whites,” Mr Ssenkumbi said yesterday.
According to a police report, the suspects open an ATM machine and insert a Personal Identification Number reader connected to a four gigabite memory card. They also attach a miniscule camera near the key board that records the password of their victims.
“After the memory card has captured the data of at least six to 10 clients, they remove it and process cards with the same information before withdrawing the money from the victims’ accounts,” Mr Ssenkumbi said.
The Ugandans are being paid $200 (Shs517,000) for every insertion in an ATM machine. It is not clear whether they deal with Stanbic Bank officials given the fact that it is the only bank issuing its own cards, but the bank’s communication manager Daniel Nsibambi last evening said they are aware of the fraud.
Bank frauds increasing
However, he said they have install devices to detect the fake cards inserted in their machines. Mr Nsibambi had earlier told Daily Monitor that they do not comment on the ATM incidents.
“For security reasons, we are unwilling to discuss specifics of the case,” Mr Nsibambi said.
However, Mr Ssenkumbi said issues of collusion with bank officials to fraud clients are part of their investigations.
“The bank told us that they have been losing a lot of money in such fraud. But we want other banks to come out and give us details of such fraud,” he said.
Bank fraud is on the increase and many clients are losing money but many banks don’t want to reveal the information to the public.
Last week police arrested five people, including bank officials from Equity and Fina Bank, who were allegedly involved in illegal money transfer from clients’ accounts. The same group allegedly defrauded Barclays Bank of Shs125m and Shs150m from Orient Bank.
Early this year, Orient Bank lost more than Shs880m while Stanbic lost Shs787m to fraud.
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