Grapevine

By Monitor
Jul 26, 2024

Loan-related fraud doubles among financial institutions

Loan-related scams doubled in just three months to June, overtaking impersonation and identity theft as the most recorded types of fraud among financial institutions.

Data by Uganda Bankers Association (UBA) indicates that loan-related fraud grew by 23.2 percent in June, increasing from 23.3 percent in March to 46.5 percent in June.

The fraud rate had, however, slightly reduced in the period ended March 2023 to 25.7 percent.

UBA does not, however, indicate, who between customers and financial institutions, was the biggest victim of the fraud.

Previously, there have been reports of financial institutions inflating loan deductions, while some are accused of making loan deductions even when loan payments have been completed.