A sophisticated deepfake video falsely portraying Dr. Sudhir Ruparelia as endorsing a bogus investment scheme has sparked major concerns over AI-powered cyber fraud in Uganda.
The billionaire businessman has issued a strong warning to the public, distancing himself from the scam and urging Ugandans to remain vigilant.
The manipulated video, believed to be AI-generated, claims that the Government of Uganda is “hiding information” about a supposed high-yield investment. It falsely alleges that an initial UGX 915,000 investment can generate UGX 10 million per month, misleading unsuspecting victims.
“This platform is completely legal, licensed, and working in the country,” the AI-generated voice falsely states, mimicking Dr. Ruparelia.
The video even accuses authorities of censorship, fueling distrust to lure in investors.
However, investigations confirm the video is a fabrication. Cybersecurity experts have identified it as an altered version of a legitimate interview Ruparelia gave to Uganda Broadcasting Corporation. AI technology was used to manipulate both visuals and audio, creating a realistic but entirely fake endorsement.
Dr. Ruparelia has categorically denied any involvement, calling the video a malicious attempt to exploit his credibility.
“Please be careful, it is a scam,” he told Kampala Town. “I urge the public to exercise extreme caution. I have not endorsed any online investment promising unrealistic returns.”
AI-Powered Cybercrime: A Growing Threat in Uganda
As Uganda’s digital economy expands, cybercriminals are deploying AI tools to craft more deceptive scams.
The PwC Global Economic Crime and Fraud Survey 2024 reveals cybercrime is now the second most prevalent economic crime in Uganda, affecting 37% of businesses—up from 12% in 2020.
AI is changing the game. Fraudsters are leveraging tools like FraudGPT to create deepfake videos, spoof identities, and launch advanced phishing attacks.
These tactics exploit organizations with weak cybersecurity measures, exposing financial institutions, businesses, and individuals to significant risks.
How AI Is Fueling Financial Fraud
According to the PwC report, AI-driven fraud is evolving across multiple fronts:
- Deepfake impersonations: Scammers use AI to forge videos and voice recordings of influential figures.
- AI-generated phishing: Synthetic content deceives individuals into divulging sensitive data.
- Cyber espionage: State-sponsored actors use AI to infiltrate networks and steal data.
- Polymorphic malware: AI-powered viruses mutate to bypass security systems.
Business Leaders Sound the Alarm
The PwC East Africa CEO Survey 2025 highlights growing concerns among business leaders. Cyber threats are now a top priority, with 28% of CEOs citing cybersecurity as a critical risk—up from 22% in 2023.
However, while many recognize AI’s transformative potential, 71% fear it could escalate cyber risks without proper governance.
The Nigerian Connection
Uganda is not alone. In Nigeria, AI scams are rising sharply, with fraudsters exploiting digital vulnerabilities to target businesses. Experts warn that Uganda’s financial sector must adopt stronger safeguards to prevent similar attacks.
Strengthening Uganda’s Cyber Defenses
Despite rising threats, Uganda still lags in cybersecurity preparedness. A 2022 NITA-U survey found that digital adoption outpaces cybersecurity awareness, leaving businesses and individuals vulnerable.
Worryingly, only 64% of organizations conducted fraud risk assessments last year, and just 29% use data analytics to detect fraud patterns.
The Road Ahead
The AI-driven cybercrime wave is already here. Uganda must take immediate action by:
- Enhancing cybersecurity education to raise awareness at all levels.
- Strengthening regulations to combat AI-enabled financial fraud.
- Investing in advanced fraud detection tools powered by AI.
- Fostering cross-border collaboration to fight cyber threats more effectively.
AI presents incredible opportunities—but without robust safeguards, it also creates the perfect storm for cybercriminals. Uganda’s digital future depends on proactive cybersecurity measures to prevent technology from becoming a tool for deception.
