Clients take bank to social media court over fraudulent withdrawals

In the face of digital banking that has taken shape, many client often find themselves victims of fraud - and often too, dubious transactions involving banks.

A section of Centenary Bank clients has taken to social media to complain about fraudulent withdrawals from their accounts.

One of the affected clients, Daphine Kamwine, accused Centenary Bank of defrauding her of Shs2.08 million.

Ms Kamwine told the Nile Post that on May 7, 2024, she discovered her account had been debited by Shs2.08 million in two separate transactions.

She tried to access her account but found herself blocked. In response, she sought help from the bank via X (formerly Twitter).

“In the evening, they replied and provided a contact number for assistance, which I called," she told this publication.

"They sent me a form to fill out, but I had to wait until the next day to scan and send it due to the late hour. I was asked for my national ID, account number, phone number, and email. A few minutes later, I started receiving messages indicating that I had withdrawn money, changed my email password, and altered my Twitter account, all of which I hadn’t done,” Kamwine explained.

She rushed to Centenary Bank's Wobulenzi branch, only to find that their system was down. She was advised to report the matter to the bank’s headquarters at Mapeera House in Kampala, where she was instructed to write to the manager in charge of customer services to initiate an investigation.

The Investigation

Ms Kamwine shared that, as part of the investigation, she was contacted by someone from the bank who asked her to answer a series of questions.

“The investigator asked me about some numbers that had called me that day. I told him I recognised them as family and friends. Besides, the person who took my money never called me,” Kamwine said.

She added that she informed the investigator that, since she lives alone, it was impossible for anyone to have accessed her phone.

However, the investigator visited her workplace to inspect her phone for the bank’s mobile app, which she didn’t have installed.

Despite this, the investigator informed her that her money was taken through the bank's mobile app.

Ms Kamwine's tribulation come after clients from one bank after another raise complaints. In the face of digital banking that has taken shape, many client often find themselves victims of fraud - and often too, dubious transactions involving banks.

But many of the banks fault clients whenever the loopholes in their digital banking system are exploited by unscrupulous persons.

The Report

On August 8, 2024, Centenary Bank communicated the findings of its investigation. In a letter signed by Charles Kabanda, the general manager in charge of Retail and Microfinance, the bank stated it would not refund the lost money.

“Your complaint was investigated, and it was discovered that you were not socially engineered before the two transactions occurred, and your phone was not lost within the timeframe. The numbers that contacted you between May 7 and 8 were confirmed to be known to you—either relatives or friends,” the bank stated.

According to the bank, the investigation revealed that the individual who performed the transactions had access to Kamwine’s phone, SIM card, account number, and Cente Mobile credentials.

Similar Complaints

Several other Centenary Bank clients have reported similar experiences. Among them is former Rubaga Deputy Resident City Commissioner Anderson Burora, who claimed to have lost Shs7 million in the same manner.

In response, Centenary Bank advised clients who have experienced such issues to report them for assistance.