Bankers start anti-fraud campaign

Jul 04, 2005

FACED with increasing fraud in the financial sector, Uganda Bankers Association (UBA) has launched a customer fraud awareness campaign to fight the menace.

By Sylvia Juuko
FACED with increasing fraud in the financial sector, Uganda Bankers Association (UBA) has launched a customer fraud awareness campaign to fight the menace.
A statement issued by UBA recently said the body had set up a sub-committee to monitor fraud and forgeries in the industry and find innovative ways to fight the vice.
“Banks take fraud risk management seriously and are constantly looking for better responses to reduce the pressures and conditions, which allow fraud to take place,” UBA said.
Financial institutions and customers are increasingly becoming targets of fraudsters. UBA encourages customers to get familiar with the fraud schemes.
“Fraud attacks against banks and customers involve syndicates or gangs who manipulate financial instruments and customer information to obtain money by false pretence,” the association said.
According to UBA, fraud and forgeries are in the form of altered and counterfeit cheques, identity assumption, closed account frauds, money transfer fraud, ATM and credit card fraud, fraudulent use of bank statements and deposit slip scams.
UBA says in the case of altered cheques, criminals steal good cheques drawn by customers, alter the amounts and names of the payee and put new information.
“The fraudulent cheque is often cashed using false identification. The scheme is often successful when customers are careless with their cheques books and when drawing cheques,” UBA said.
Criminal gangs linked to money transfers have become active and sophisticated by offering sizeable commission to people whose accounts are used to receive funds to be transferred from other countries.
UBA cautions customers against giving their account details to unknown persons.
It says clients must also avoid being tempted by offers of large commissions in exchange for details of their accounts to unknown persons.
Other incidences of fraudulent use false of banks statements have been reported by embassies.
Ends

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