How Centenary Bank staff connived with fraudster to steal over shs100m from client’s account

Kampala, (UG): The management of Centenary Bank Uganda on Wednesday acknowledged a fraudilent activity which involved one of its staff collaborating with an outsider to withdraw over Shs100 million (Ugandan Shillings) from a client’s savings account.

In a statement dated October 18, the bank acknowledged that the fraudulent activity indeed happened and that the stolen funds have since been refunded to the client’s account, with the staff in question (whose details were not revealed) taken for disciplinary action.

Centenary Bank in the statement seen by this publication explained that the fraudulent staff and the outsider suspect collaborated to initiate a PIN reset on a customer’s account, enabling transactions at the bank and subsequent withdrawal of funds.

”We have discovered that there was connivance between a fraudster and one of our staff to make a pin reset which enabled transactions at the agents where funds were withdrawn. The staff involved has faced disciplinary action in accordance with our stringent anti-fraud policy” Centenary Bank said in a statement.

The bank added that a case of fraud and theft has also been reported to the police, who are handling the investigation further.

Additionally, the Catholic-founded bank reiterated its commitment to safeguarding its customers’ funds and maintaining a zero-tolerance stance on fraudulent activities. Customers were advised to contact the bank before authorizing any requests regarding their account information.

The development follows a video that went viral on social media depicting a woman lamenting the alleged theft from her Centenary Bank account, prompting the bank to launch an investigation.

Of recent, similar accusation surfaced regarding Equity Bank, where a customer claimed to have lost Shs10m through fraudulent transactions. Although Equity Bank management did not come out to address the allegations.

While it remains unclear how the allegations against Equity Bank were addressed, the bank’s management acknowledged their engagement and support for the affected customer and relevant authorities to resolve the issue.

The swift response by Centenary Bank to address the fraud incident has generated mixed reactions on social media.

While some individuals commended the bank for its actions, others expressed concerns about the credibility of financial institutions in Uganda, particularly in light of recent scandals.