Uganda's Ministry of Finance has confirmed a cyber breach targeting the Bank of Uganda's IT systems, leading to the unauthorized transfer of 62 billion Ugandan shillings (approximately $16.8 million) from central bank accounts. However, officials insist that the scale of the theft is smaller than initially reported.
Details of the Breach
· Incident Date: Early December 2024
· Revealed By: State Minister for Finance, Henry Musasizi, during a parliamentary session.
· Investigation Status: Ongoing, with the Criminal Investigations Department (CID) and the Auditor General nearing the conclusion of their inquiries.
Musasizi addressed parliament, stating, “It is true our accounts were hacked into, but not to the extent of what is being reported.” The ministry awaits a comprehensive police report to provide further clarity.
The Hacking Group Behind the Attack
The breach has been attributed to a hacking group known as "Waste," allegedly operating out of Southeast Asia. Investigations suggest that part of the stolen funds was transferred to accounts in Japan, further complicating recovery efforts.
Bank's Response and Recovery Efforts
The Bank of Uganda issued a vague statement on the incident, neither confirming nor denying the breach. Despite this, the institution reported that over half of the stolen funds have been recovered, indicating progress in their efforts.
Insider Threats Under Investigation
Uganda’s leading independent newspaper, Daily Monitor, reported possible insider collusion within the central bank, raising concerns about the robustness of its internal security protocols.
Government and Presidential Action
President Yoweri Museveni has ordered a thorough investigation into the breach, underscoring the need for accountability. This attack is part of a worrying trend of cyber
thefts targeting financial institutions and telecom companies in Uganda, signaling a growing threat to the sector.
Rising Security Concerns
Cybersecurity experts have warned of an increasing susceptibility to cyber threats among financial institutions in Uganda. Many organizations avoid publicly disclosing such breaches to maintain customer confidence, but this secrecy could hinder transparency and leave the sector vulnerable.
Recommendations for Financial Institutions
1. Enhance IT Security Protocols: Conduct regular audits and vulnerability assessments to identify and mitigate risks.
2. Employee Training: Implement robust training programs to equip employees with the skills to recognize and prevent cyber threats.
3. Incident Response Plans: Develop, test, and update response plans to ensure swift and coordinated action during breaches.
4. Transparency in Reporting: Foster trust by openly reporting cyber incidents and outlining steps taken to address vulnerabilities.
This breach serves as a stark reminder of the critical importance of cybersecurity in safeguarding national financial systems. Proactive measures, accountability, and transparency will be essential in preventing future incidents.
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