By Daily Monitor

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The Bank of Uganda (BoU) on Tuesday warned against Artificial Intelligence (AI) generated fraud, with the central bank saying it will not be held responsible for any crimes associated with it.

AI fraud cases, mostly in the line of financial technology (Fintech) spaces, has been on the rise in the last decade with major global banking and other financial institutions hit hardest.

“We cannot protect you against fraud linked to AI, but we can arm you with information on how to protect yourself on the technology you use,” BoU Executive Director for Supervision Dr Tumubweinee Twinemanzi said.

Read: AI in business: The opportunities and challenges

Dr Twinemanzi also urged for vigilance against fraud in this fast-rising AI and continued digitisation era.

He further emphasised that one of the major roles of BoU is to ensure financial implementing monetary policies but pledged that the central bank is actively cracking the whip on all forms of fraud.

“The Bank of Uganda will get more involved in dealing with all form of fraud cases. We will issue cybersecurity guidelines in terms of how financial institutions manage fraud risks and cyber threats,” he said.

“When financial institutions submit their internal capital adequacy assessment, BoU will require them to look at the various risk categories to help them give an answer on what kind of capital they are holding in the event a fraud risk happens,” he added.