Police have disrupted a suspected “black dollar” counterfeit currency syndicate targeting farmers, civil servants and businesspeople in Kamuli District and picked up 22 suspected dealers. The suspects were arrested during an early-morning operation on Wednesday in Butabaala and Buwagi villages in Nawanyago Sub-county, following complaints from people in Masaka, Jinja and Kampala who allegedly lost millions of shillings in the scam.
The suspects are being held at Kamuli Central Police Station and are expected to face charges of manufacturing and distributing counterfeit currency. Police say the group allegedly targeted people seeking quick financial gains, particularly large-scale farmers and young professionals, by convincing them that they could acquire large amounts of US dollars at highly discounted prices.
The suspects, who reportedly refer to themselves as “black dollar dealers,” allegedly posed as beneficiaries of wealthy foreigners who had died and left them large sums of money. They are also said to operate with networks of middlemen in major towns and cities, who identify potential victims in places such as bars and hotels before obtaining information about their financial capacity.
A detective familiar with the investigations, who spoke on condition of anonymity, said the suspects exploit victims’ trust by using technology to create the impression that they have sophisticated international financial connections. According to the detective, the fraudsters initially demonstrate mobile applications and other technologies to convince potential victims of their credibility before introducing them to the fake dollar business.
The victims are then allegedly persuaded to invest between 10 million and 30 million shillings with promises of earning as much as 20,000 US dollars. “These boys convince farmers that they can earn 20,000 USD after paying between 10-30 million shillings, which triggers them to pay this money willingly and only come through to complain after realising the fraud,” the detective said. One of the alleged victims from Kampala reported losing 100 million shillings in July after being introduced to the suspected fraudsters by an acquaintance at a luxury bar.
The victim said he was initially told that one of the suspects had more than 100,000 US dollars allegedly left behind by his deceased foreign employer and was struggling to spend the money. He initially paid one million shillings and received 1,000 genuine US dollars, which convinced him that the deal was legitimate. He later paid 100 million shillings in exchange for 80,000 US dollars. However, when he took the money to a forex bureau the following day, he was informed that the dollars were counterfeit.
The victim said the suspected fraudster and the acquaintance who had introduced him subsequently switched off their phones, forcing him to seek police intervention. Busoga North Police spokesperson Samson Lubega said several complaints had been received from victims of the alleged scheme, making the operation timely. Lubega said the suspects are also increasingly targeting young professionals who want to make quick money, with some reportedly losing between five and 10 million shillings.
He said police have compiled intelligence reports from various security agencies, which will be used as evidence in the prosecution of the suspects. Lubega cautioned the public against deals promising unusually high returns through foreign currency transactions and urged anyone who encounters suspected counterfeit currency dealers to report them to police-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
