Hackers allegedly responsible for mobile banking fraud in Kenya, as per the central bank, yet confidential sources hint at potential insider involvement
In the heart of Kenya's bustling financial landscape, a concerning trend has emerged. Detectives believe that two bank tellers may have passed on sensitive information to robbers, pointing towards insider collusion with criminals. This revelation underscores the growing issue of financial fraud in the country.
Recent events have highlighted the vulnerability of the banking sector. A client claiming to be from Equity Bank's customer service transferred KES 1,000,000 ($7,773) into Sylvia Wanjiru's account, a move that raised suspicions. Someone was watching Sylvia's transactions and even tried to confirm the transaction over the phone, adding to the mystery.
Sylvia's parents, unfortunately, were not immune to this fraud. They lost their pension payments and money from a mobile money wallet after calling a number that claimed their account was suspended. This incident underscores the need for vigilance in the digital age.
In response to these incidents, Equity Bank's CEO has vowed to be "ruthless" in protecting customers and the bank. The bank announced it was firing 1,500 staff to protect its image and customers, a move that has been extended to its subsidiary in Uganda.
KCB Group, NCBA, Absa, and Co-operative Bank are among the Kenyan banks that have also let go of staff over misconduct. Accounts from victims, bank staff, and law enforcement suggest that most losses of funds are inside jobs.
The Central Bank of Kenya (CBK) reports a more than doubling of cyber fraud cases in the banking sector in 2024, with the amount exposed increasing to KES 1.9 billion ($14.7 million) and losses nearly quadrupling to KES 1.5 billion ($11.6 million) in 2025.
Victims rarely report fraud due to embarrassment, small sums involved, or the hassle of filing a complaint with the police. The Communications Authority of Kenya reported 7.9 billion cyber threats in the first eight months of 2025, double the figure for 2024.
A shadow industry in Nairobi neighbourhoods like Utawala and Ruiru thrives on mobile banking fraud, operating like call center outsourcing hubs. Workers are recruited through job ads for "customer service" roles, only to discover that the scripts involve impersonating bank officials or mobile money agents.
The erosion of trust is a consequence of the blurred lines between cyber-attacks, insider theft, and organized racketeering. The BFIU investigator warns that these blurred lines are a significant challenge in Kenya's financial system.
The people behind the schemes target big banks with vast retail business like Equity Bank, KCB Group, and Co-operative Bank. In 2024, Equity Bank reported losing KES 1.5 billion ($11.6 million) to a fraud involving bank staff colluding with property developers and lawyers.
Despite the rising risks, Kenya's banking sector remains "resilient," able to withstand shocks from successful cyber-attacks, according to the Central Bank of Kenya. However, the ongoing battle against financial fraud requires continued vigilance and cooperation from all stakeholders.
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