MTN’s Monetary And Godwill Loss Due to Phone Scam

Nowadays, there are no limitsto the number of phone scams occurring. The clever hackers know the various loopholes in the system and take advantage of this gap. The best example is the phone scam of the MTN service in Uganda.

Foxy MTN staffs have done what the company never thought would happen. They have hacked into the mobile company’s suspense account and stole up to 15 billion Shillings. As per the daily Observer, the suspense account was basically created to store those transactions which went wrong. The general public became aware of the scam last week but the top officials of the company knew about it for a year.

MTN has taken a beating in hiding the scam and are literally struggling to keep up with the company’s goodwill. The Observer spoke with their undisclosed source on how this particular scam occurred. There are certain situations where a subscriber will press a wrong digit or enter a wrong figure while making a transaction using the MTN’s mobile service. Now what happens here is this financial transaction that takes place is recognized by the mobile service’s system but doesn’t complete it. So while the money is send, the amount is not received by the receiver. Since the money is not received, it is kept in the suspense account.

As per Observer’s source, usually the suspense account system is followed by banks, but since the owner of the money has not been known in this case, the company has created a suspense account. Now since the process of recovering the money is tedious and long, the subscribers struggle a lot to recover them.
Since a good number of them send only meager amount, they simply give up or leave it as it is. This money is then monitored by the MTN staffs and the cunning ones get this amount by making fictional claims. As per the statement issued by the MTN representatives, the company is taking the help of various reverse number websites and as well as upgrading their mobile system. So chances offraudsters taking advantage are very bleak.

Also there has been an issue or a cunning technique followed by cunning crooks where they would make payments or deposit fake currencies in areas where the representatives or dealers cannot recognize such counterfeit notes. And they would later on withdraw the amount and get genuine money in return.
Most of the time, the skillful employees are well aware of this counterfeit forgery and they work with the fraudsters. They especially give the crooks the name of the dealers who accept the amount blindly. That doesn’t end there. Some of the shrewd staffs have also made the life of dealers miserable. The dealers or representatives get a commission of 800 Shillings for each transaction. Now this commission system is an automated process and some of the employees have been able to hack into this system and deny the rightful commission to these dealers.

Obviously, the worst affected in this case are the commission agents and dealers whose daily transaction is less that 2000 Shillings. To make matters worse, these agents don’t have a proper or legitimate recording system. This makes it difficult for them to reconcile their transaction with the company as there is a lack of proper records. These devious MTN staffs take advantage of the holes in the system and become the decider of the amount of commission each dealer should get. While doing this, they transfer or keep a hefty sum for themselves.

As per the information passed on by the Industry source to the Observer, the scam has really bought the focus on the issue of having a strict and proper regulation. How the mobile money services should be regulated has been the question that has been going around for some time. But there is no convincing answer for it. Both the Communications Commission of Uganda and Bank of Uganda share a certain power to regulate the service, but there is no comprehensive policy or law that could keep a watch on the financial scams and irregularities.

As per various sources, since the scam hascome into the light, MTN company in Uganda has engulfed in a great tension. Few days back most of the company’s top management were stuck in meetings and the financial irregularities and scams issue were the supreme thing on the agenda. From a close source, it was known that MTN is yet to decide whether it should make the internal audit department responsible for this problem. Already because of this mess, they have lost three of their senior most staffs and there are chances that still more people could get sacked as the investigation continues.

The scam came to the light of the MTN authorities after the arrival of the investigation team from South Africa. They arrived earlier this year following a tip-off from their secret source. Through their investigation, the team found various loopholes and forgeries in the company’s operation and they have recommended for a broader and detailed investigation. Now the recent news is that the MTN Uganda’s management has reported to the cops about this scam and they have already sacked certain employees who they feel are responsible for this scam.

The company’s representative has assured their customers that they will be enhancing their mobile operations and techniques and even will be taking the assistance of various reserve number websites to fight this scam.

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