The Bank of Uganda has issued a public warning concerning fraud involving ATMs and dormant bank accounts and is putting a ceiling on online funds transfers, the bank’s spokesperson tells PaymentsSource.
“Fraudsters use cameras placed in the ATM rooms to duplicate ATM cards, and such incidents are increasing,” he adds. They use the cameras to watch cardholders enter their personal identification numbers and skimmers to read the card data.
With illegal funds transfers, insiders, sometimes bank staff, fraudulently transfer large amounts of money from the victim’s accounts to dormant bank accounts, according to the official. “When the money is later withdrawn from the account and police start investigations, the accountholder becomes” the first suspect, he adds.
Because of this, the Bank of Uganda has put a daily ceiling of Ush20 million (US$9,592 or 7,100 euros) on how much consumers may transfer electronically, the official adds.
