How Uganda is losing billions to cybercrime
According to the Uganda Police Annual Crime Report, 245 cybercrime cases were recorded in 2022, a 10.8% increase from the previous year. Financial institutions bore the brunt, losing nearly UGX 15 billion in cyber-related incidents.
Uganda is grappling with an alarming rise in cybercrime, with reported cases surging by 50% between 2021 and 2022, leading to significant financial losses.
In 2022 alone, cybercrime drained the Ugandan economy of an estimated UGX 19.2 billion. According to the Uganda Police Annual Crime Report, 245 cybercrime cases were recorded in 2022, a 10.8% increase from the previous year. Financial institutions bore the brunt, losing nearly UGX 15 billion in cyber-related incidents.
Despite this, there has been a silver lining in 2023, with financial losses reported to have decreased to UGX 1.5 billion.
Speaking at the launch of the October Cybersecurity Awareness Month in Kampala, Emmanuel Chagara, CEO of Milima Security, stressed the urgent need for enhanced cybersecurity measures. “Cybersecurity is no longer a luxury; it’s a necessity. We must unite to secure our digital landscape,” Chagara emphasized.
The National Cybersecurity Strategy, introduced by the National Information Technology Authority Uganda (NITA-U) and the Ministry of ICT and National Guidance, provides a roadmap for strengthening the country’s defense against cyber threats. The annual Cybersecurity Awareness Month is part of a larger effort to educate citizens and organizations on best practices for protecting against cyberattacks.
Chagara also highlighted the importance of innovative security solutions, citing Milima Security’s services such as penetration testing, vulnerability assessments, and digital forensics as vital tools in combating cyber threats. He also underscored the role of education in equipping Uganda’s tech workforce with the necessary skills to stay ahead of these risks.
However, Chagara warned that despite advancements, Uganda’s cybersecurity framework still has critical gaps. The country’s position in the Global Cybersecurity Index 2024, published by the International Telecommunication Union, shows weaknesses in areas like incident response, legal frameworks, and public awareness.
With over 23 million Ugandans using the internet, representing nearly half of the population, the need for robust cybersecurity measures to safeguard individuals, businesses, and critical infrastructure has never been more pressing.
Martin Karungi of NITA-U emphasized the significance of Cybersecurity Awareness Month, particularly as internet usage spreads across Uganda. “Our personal devices are vulnerable to attacks, especially smartphones that store sensitive banking information,” Karungi pointed out, adding that simple passwords can lead to massive financial losses.
Noeline Nassuuna from the Defenders Protection Initiative expressed concern over increasing cyberattacks on human rights defenders and activists, highlighting the need for awareness and the provision of essential cybersecurity tools to protect these groups.
Henry Mpindi, Finance Manager at the Association of Microfinance Institutions of Uganda, also noted a rise in cyberattacks since the pandemic pushed institutions to adopt digital platforms. “Many institutions and their clients have lost significant amounts of money to cyberattacks, showing the urgent need for enhanced cybersecurity measures,” Mpindi stated.
Themed “Secure Our World,” the October Cybersecurity Awareness Month aims to promote daily practices to reduce online risks and ensure Uganda builds a more secure digital future. Through collective action and awareness, the nation can mitigate the financial impact of cybercrime and better protect its digital infrastructure.
