A new type of bank fraud uncovered by Police

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Police in Uganda have revealed a new wave of crime in financial institutions where bank officials conspire with conmen to siphon money out of bank accounts, but efforts to apprehend culprits are thwarted by the affected banks for fear of negative publicity.

“Banks do not want to reveal what is happening for fear of negative publicity. They say it is an internal matter,” Simeo Nsubuga, a police spokesman in the capital Kampala, told a press conference at the Central Police Station.

“Bank officials transfer money to the accounts of their accomplices without the customers’ knowledge,” he alleged, saying, “11 suspects, including four officials of Crane Bank (an Indian-owned Bank), were arrested last week for fraudulently withdrawing over sh50m (US$ 32,000).”

Without giving specifics, Nsubuga said the problem appeared to be widespread but regretted that the police efforts at investigating the cases were being frustrated by the banks which prefer to handle the matter internally.

“In some instances, customers’ signatures had been forged and transactions conducted, using the unsuspecting customer’s accounts,” he said. Panapress .

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