MTN Uganda has on Saturday March 12 experienced a huge system breakdown, in what industry experts have described as a likely ‘major hack’ on its mobile money system again.

During the system breakdown, all digital enabled transfer services including buying internet or voice bundles and other financial transactions completely went down after being slow for a couple of hours— plunging the company into a fresh crisis.

Before the system completely went off, a number of clients and agents claim to have lost money in “self initiated transactions”.

This website couldn’t independently verify these claims but MTN Uganda in a social media post confirmed to have experienced a huge system breakdown and apologized for any consequences caused.

“Dear Customers.
We are currently experiencing interruptions in our MTN Mobile Money service. Our teams are working hard to restore the service. We apologize for all inconveniences caused. Management,” MTN wrote on social media confirming a system breakdown.

The company didn’t give any details on what could have caused the system breakdown.

Th last time MTN Uganda experienced such a huge system breakdown, it was a result of a security breach on a consumer finance aggregator, Pegasus Technologies.

At least $3.2 million is estimated to have been stolen in last such incident with some reports quoting a much higher figure. The hackers used around 2,000 mobile SIM cards to gain access to the mobile money payment system, reports indicated. They then instructed the banks to transfer millions of dollars to telecommunication companies who then paid out mobile money to these different SIM cards across the country.

Clients pour frustration

One of the MTN clients Julius Nkunda wrote:
“I have been standing at the mobile money shop for 25 minutes. I withdrew money. I have a message showing that I withdraw and my balance has changed, but the agent says he hasn’t received the money on her line.”

Another user, Julius Mugenyi claimed to have lost his money in the process.

“[MTN Uganda] why did I lose my money when I transferred or sent money from MTN to airtel. The receiver never received the money and it has never turned up on my MTN. Does this mean it’s on its way to the receiver or wtf is going on here.”

Another user Ivan Tomson said he transferred money from his bank account to an Mtn mobile money number but it got lost on the way.

An MTN agent in Mengo, Lubaga Division claimed to have ‘money’ after a self initiated transaction

The MTN agent who declined to be named said, by press time, she hadn’t reported the matter to MTN, saying that all customer line was busy.

The MTN Saturday epileptic system breakdown is said to have affected payments and commerce for millions of users and businesses that depend on it, with sector experts noting that: “If anything, this shows us why we have to disabuse ourselves of these legacy centralised payment systems”.

A top MTN Uganda executive who declined to be named because he is not authorized to speak for the company noted that the company has launched a massive probe into the matter following a Saturday afternoon crisis meeting.

Experts also described Saturday system breach as huge blow to efforts to drive up financial inclusion in Uganda and other countries in the region.

A majority of Ugandans have no formal bank account and rely on mobile money for its convenience. In some rural areas it is the only feasible option. Mobile money payments are used in agriculture, energy, health and education, among other sectors.

The Uganda Police Annual Crime and Road Safety Report of 2019 showed more than 41 billion Ugandan Shillings ($11m) was lost to criminals through cyber crimes including swapping SIM cards and hacking digital financial accounts last year.