Centenary Bank has reimbursed funds that were reported missing from a customer’s account, revealing further details about the unsettling events surrounding the case.
Earlier this week, the bank faced scrutiny following a social media post by a client alleging a loss of over sh100m from their account.
The investigation conducted by the bank uncovered that the missing funds were a result of collaboration between an external fraudster and an internal staff member. The staff member initiated a PIN reset on the client’s account, enabling unauthorized transactions at different agents and leading to the withdrawal of funds from the customer’s account.
In a statement, the bank mentioned, “We have promptly refunded the affected client while exploring alternative avenues to recover the funds. We urge all clients to promptly report any suspicious account activities or questionable messages they receive on their phones for immediate verification.”
“We have determined that there was a collusion between a fraudster and one of our staff members to execute a PIN reset, facilitating transactions at various agents resulting in the withdrawal of funds.”
The staff member has faced disciplinary action in accordance with the bank’s policy of zero tolerance for fraudulent activities. The case has also been reported to the police, who are managing the issue involving the fraudster.
During the Annual Bankers Conference held in Kampala by the Uganda Bankers Association, Ronald Azairwe, the managing director of Pegasus Technologies, highlighted collusion as a major factor contributing to fraudulent activities in the financial sector, among various other identified causes.