I&M Bank Rwanda loses $10.3m to fraudsters

I&M Bank Rwanda, a subsidiary of I&M Holdings, has lost a total of approximately $10 million USD to fraudsters in a major financial scam. The bank has reported that the fraudsters hacked into its Swift system, which is used for international money transfers, and made fraudulent transfers to bank accounts in different countries.

According to reports, the fraudsters used fake documentation to initiate the transfers, and I&M Bank Rwanda only realized what had happened when it was contacted by the beneficiaries of the fraudulent transfers. The bank has since launched an investigation into the matter, working closely with the relevant authorities to track down the perpetrators and recover the stolen funds.

I&M Group has made the disclosures in its annual report after the end of the financial year ahead of the general meeting with shareholders.

“Subsequent to year-end, management of I&M Bank (Rwanda) PLC discovered incidents of fraudulent withdrawals through customer wallets amounting to $10.3 million during the period 1 November to 17 January 2023,” said the group in the annual report.

“As of the date of these financial statements, some recoveries have been made and investigations are still ongoing.”

I&M Bank Rwanda’s loss of about $10.3 million USD due to cybercrime is a significant blow to the bank’s reputation and financial stability. The incident highlights the importance of cybersecurity measures in the banking industry, especially in the era of digital banking and online transactions.

The bank has assured its customers that it has taken steps to mitigate the damage and prevent future incidents of this nature. It has also urged customers to be vigilant and report any suspicious activity to the bank immediately. The incident serves as a wake-up call for banks and other financial institutions to strengthen their cybersecurity measures to prevent such incidents from occurring.

I&M Holdings, the parent company of I&M Bank Rwanda, has released a statement expressing its commitment to ensuring the security of its customers’ funds and personal information. The company has emphasized that it takes the matter seriously and is working closely with the bank’s management to address the issue.

I&M Holdings has also stated that it will continue to invest in the latest cybersecurity technologies and processes to safeguard its customers against fraud and cybercrime. The company has urged its customers to remain vigilant and report any suspicious activity to the bank immediately.