Uganda Has Highest Mobile Money Fraud Cases – Report
More than half of Uganda’s mobile money agents have reported the highest incidents of fraud among the eight countries studied, a new report reveals.
The report by Helix Institute of Digital Finance and Financial Sector Deepening Uganda (FSDU) says Uganda’s fraud rate stands at 53 per cent, closely followed by Tanzania at 42 per cent and Kenya at 22 per cent.
The Agent Network Accelerator Survey (ANA) report on Wednesday at Sheraton Kampala Hotel is based on a research carried out on 2,288 mobile money agents interviewed across the country.
“In spite of provider and regulator efforts, the percentage of agents who report having personally or through one of their employees experienced fraud has in the last year doubled since 2013 and the levels are higher than in any other ANA country,” the report reads in part.
Despite these challenges, the report faults the country for the low regulatory compliance saying on average, only two per cent of customers show an ID when performing a transaction.
According to the report, the Uganda digital finance market is majorly split between two players. It also highlights that there has been a drop in exclusivity compared to 2013 as mobile money agents now serve more than two providers.