Phone fraud suspect handed jail term

The public has been warned against interfering with financed digital assets since such acts constitute criminal offenses  

Kampala, Uganda | THE INDEPENDENT | The Makindye Chief Magistrate’s Court has sentenced a man to six months in prison after he pleaded guilty in a phone fraud case involving a pay go/credit smartphone scheme.

Joseph Sekiziyivu was arrested on December 24, 2024, after authorities found him in possession of a Samsung mobile phone he had acquired on hire purchase from Watu Uganda, an asset financing company.

The prosecution told court that Sekiziyivu had deliberately flushed the phone to reprogram or disable its tracking and payment functionalities in an attempt to avoid completing his payment obligations.

The court also heard that Sekiziyivu had acquired the phone through a pay-go/credit arrangement, which allows clients to gradually pay for digital assets while using them.

Initially, Sekiziyivu claimed that the phone had been stolen. However, during pre-trial discussions, he opted for a plea bargain and changed his plea to guilty, which helped to expedite the legal process and secure a reduced sentence.

Six month’s imprisonment

In his ruling, the magistrate sentenced Sekiziyivu to six months’ imprisonment and further ordered him to pay Shs 650,000 (equivalent to the value of the phone) in compensation to Watu upon completion of his jail term.

“The sentence was guided by both the gravity of the offense and the mitigating factors, including the accused’s willingness to admit guilt,” said Viola Musiimire, Watu’s legal manager.

As part of the plea agreement, Sekiziyivu voluntarily waived his right to a full trial and to appeal the conviction. The court also emphasized that the ruling should serve as a deterrent to others who may seek to exploit digital financing models.

Musiimire warned the public against interfering with financed digital assets, such as locked phones or GPS-enabled motorcycles, noting that such acts constitute criminal offenses and will be prosecuted.

“Any attempt to tamper with or interfere with financed digital assets is a criminal act. We will, therefore, not hesitate to pursue legal action and ensure that those who engage in such activities are prosecuted to the full extent of the law,” she said.

It should be remembered that in November last year, City Hall Chief Magistrate Edgar Kalyegira also remanded five men suspected to be part of a sophisticated phone-flashing syndicate to Luzira prison.

The suspects were charged with identity theft, phone theft, and attempted fraud for allegedly modifying over 3,000 mobile devices acquired through loan schemes.

According to Japheth Kawanguzi, team leader at the Innovation Village, Phone flashing enables cybercriminals to access sensitive personal and financial information, fueling identity theft, online fraud, and unauthorized mobile money transactions.

“What appears to be a simple technical manipulation is a potent tool in the hands of cybercriminals. This illegal reprogramming allows them to dismantle phone security, wipe crucial data, and even mask the device’s identity. The result is unrestricted access to personal and financial details, which they can then weaponize for identity theft, online scams, and illicit mobile money transactions,” he warned.

Kawanguzi warned that the risks posed by cybercriminals will likely escalate as Uganda’s digital economy expands.

Growing digital economy

Over the past five years, Uganda’s digital economy has experienced significant growth, marked by substantial increases in internet penetration and mobile money usage. In 2019, internet penetration stood at approximately 25%.

By early 2024, this figure had risen to 27%, with 13.3 million internet users. Meanwhile, as of September 2024, Uganda had 45.6 million registered mobile money subscribers, with 30.4 million active accounts—defined as those that had transacted within the previous 90 days.

This indicates that approximately 33.3% of mobile money accounts were inactive during that period. These figures reflect a significant growth from March 2023, when there were 37.3 million registered accounts and 26 million active users.