Reports from news outlets in Uganda are claiming that the African mobile giant MTN has lost billions of Ugandan shillings through fraudulent use of its mobile money service. Allegedly the fraud, which took place in 2011, was facilitated by employees of the operator.
The reports claim that fraudsters from outside the company used MTN employees’ inside knowledge of the mobile money service to evade the verification system, thereby stealing money from within the operator – the full amount stolen has not yet been revealed. Current exchange rates place one billion Ugandan shillings at approximately US$410,000.
MTN’s mobile money transfer service was launched in Uganda in March 2009 in conjunction with mobile payments specialist Fundamo, which has since been acquired by VISA.
