Dar pushes for cyber crime law as fraud increases...Billions lost from customers’ accounts as thieves get smarter. Now Tanzania moots a new law to catch the thieves. TEA Graphic By ADAM IHUCHA Special Correspondent Posted Saturday, October 26 2013 at 15:29 IN SUMMARY Police records show that between 2010 and the first quarter of 2013, cyber fraud-related losses in banks stood at around Tsh9.8 billion ($6.10 million). According to government officials and bankers, the most reported fraud in banks in Tanzania involves card skimming and ATM withdrawals. Risk experts said while rising cases of fraud are motivated by personal greed, there are increasing cases driven by pressure on individuals to achieve higher profit and budget targets. SHARE THIS STORY Tanzania wants to fast-track the enactment of a cyber crime law to address rising cases of fraud, which have seen local banks lose up to Tsh9.8 billion ($6.10 million) over the past three years. New data shows fraud is raising its ugly head in Tanzania’s banking industry, with techno-savvy criminals colluding with bank employees to siphon millions of shillings out of customers’ accounts. Police records show that between 2010 and the first quarter of 2013, cyber fraud-related losses in banks stood at around Tsh9.8 billion ($6.10 million). The police cyber crime unit said between 2011 and 2012, at least 500 Tanzanians were arrested over fraud cases. According to Deputy Minister for Home Affairs Pereira Silima, some 320 people were arrested between July and December 2011, whereas in 2012 230 people were arrested over the crime. More recently, Exim Bank in Arusha became the latest victim, with nearly Tsh7 billion ($4.4 million) reported to have been siphoned out of customers’ accounts in the biggest bank fraud case in Tanzania. On September 20, Tanzania filed a criminal case of fraud and theft in a court in Arusha against 14 former Exim Bank employees. They denied the charges. It is understood that a dozen Exim Bank customers who lost millions of shillings from their accounts have filed cases at the Tanzania High Court, Commercial Division. Some have decided to lodge their complaints in writing before the Bank of Tanzania, which oversees all financial institutions. Among the Exim Bank customer victims is Tanzanite dealer Pendaeli Mollel, who claims to have lost over Tsh800 million ($500,000) to the fraud and theft rackets. The EastAfrican has seen various documents indicating Mr Mollel is a holder of three Exim Bank accounts. Mr Mollel has through his lawyer, Omar Iddi Omar, written to the Bank of Tanzania, seeking its intervention to ensure he recovers his money. Exim Bank board of directors chairman Yogesh Manek said the management was conducting a thorough internal audit to establish the exact amount of cash stolen. “Immediately after the special audit is done, the management will start making accounts reconciliation with the customers and those with genuine claims will have their money paid back,” said Mr Manek. Speaking to The EastAfrican, Deputy Minister of Finance Saada Mkuya said cyber crime is becoming an economic disaster, prompting the state to fast-track the enactment of the cyber crime law. “Looking beyond the numbers, cyber fraud spells economic disaster not only for bank customers, but also for the financial institutions, mainly banks,” she said. The government is working on a draft cyber crime Bill that is yet to be made public. According to government officials and bankers, the most reported fraud in banks in Tanzania involves card skimming and ATM withdrawals...theeastafrican.co.ke/news/Dar-pushes-for-cyber-crime-law-as-fraud-increases/-/2558/2048142/-/ctdd7s/-/index.html
Posted on: Sat, 26 Oct 2013 20:10:03 +0000
Trending Topics
© 2015