The Government has issued a strong warning to gold dealers to exercise maximum vigilance as scams in the mineral trade continue to rise.
Officials say fraudsters are targeting unsuspecting traders and investors by posing as legitimate gold buyers and sellers.
David Ssebaggala, a senior inspector of mines at the Ministry of Energy and Mineral Development, addressed journalists on Monday and cautioned dealers against falling for fraudulent offers.
“In most cases, it is a case of who has outsmarted who,” Ssebaggala said.
“Some of these people who pretend to be gold buyers come here to con. No genuine trader of gold is going to ask you for a fraction of the entire cost of the deal to give you the gold,” he added.
He explained that many of the fraudulent transactions appear highly attractive on the surface, but they are in fact deliberate traps designed to cheat dealers.
Ssebaggala emphasized that scammers are often highly skilled and sometimes even possess valid licences, which they exploit to mislead victims.
“If a transaction in trade of gold is too good to be true, it is a scam,” he warned.
“Even if you tell people they are going to be cheated, they don’t listen. Some of these people have licences, but they will still con you. Endeavour to do due diligence with companies you are trying to deal with,” he said.
He also sent a message to foreign investors who underestimate Ugandan traders, warning them that such attitudes often backfire.
“When you come with a perception that people here are dumber than you, they will outsmart you. Uganda is not a paradise where you are going to come for minerals and take them for free,” Ssebaggala cautioned.
The Commandant of the Police Mineral Protection Unit, Julius Cease Tusingwire, echoed the warning and explained the sophisticated methods fraudsters are using.
He revealed that scammers rely on forged documents, stolen images of mining sites, and fraudulent offices to trick unsuspecting buyers.
Tusingwire pointed out that the criminals lure victims by offering gold at prices far below the international market rate.
“While a kilo of gold goes for between $100,000 and $120,000, the scammers will tell you they have a kilo at $40,000,” he said.
“They promise to process documents and ship the gold, but once you send them money, you wait until gold never reaches,” he explained.
The Police chief disclosed that since January, security agencies have conducted a series of operations against fraudsters.
Crackdowns have taken place in Kampala suburbs including Muyenga, Buziga, and Kansanga, where several scam premises were shut down and suspects arrested.
Despite these efforts, Tusingwire admitted that the scams are resurfacing, forcing police to resume countrywide operations.
He reassured the public that law enforcement agencies are committed to dismantling the networks behind the fraudulent gold trade.
