Unidentified cybercriminals suspected in mobile banking fraud in Kenya, as insiders potentially implicated in the scheme
In the bustling financial landscape of Kenya, a growing concern has emerged: cyber fraud. The past few years have seen an alarming increase in such incidents, with the Central Bank of Kenya reporting a more than doubling of cases in 2024. The Communications Authority of Kenya reported 7.9 billion cyber threats in the first eight months of 2025, a figure that nearly doubled from the previous year.
One of the most common tactics used by fraudsters is targeting banks with vast retail business, such as Equity Bank, KCB Group, and Co-operative Bank. A recent case involved pension payments of KES 34,000 and KES 2,500 disappearing from mobile money wallets after recipients called a number that texted about account suspension. Another victim, Sylvia Wanjiru, lost a million-shilling payment from a client, followed by a call from someone claiming to be from her bank's customer service.
The pay for workers in this fraud industry is per successful hit, meaning the more money they steal from customers, the more they earn. This has led to a shadow industry thriving in Nairobi neighbourhoods, with bank staff monitoring accounts and tipping off fraudsters. In fact, two bank tellers may have passed on information to robbers in the case of the murdered teacher in Mumias, pointing to insider collusion with criminals.
The consequences of these fraudulent activities are far-reaching. The erosion of trust among customers is a significant concern, as many victims, unsure whether the fraudsters are hackers or someone inside their bank, choose not to report. This reluctance to report has allowed the fraudsters to continue their activities unchecked, targeting vulnerable groups such as rural pensioners, urban traders, and salaried workers with predictable income streams.
In an attempt to combat this issue, Equity Bank has taken drastic measures. In May, the bank announced it was firing 1,500 staff to protect its image and its customers. The bank has also extended the staff firing exercise to its subsidiary in Uganda. However, the lines between cyber fraud, insider theft, and organized crime are blurred, with corrupt police officers sometimes paid to protect operations, tip off the syndicates before raids, or frustrate investigations.
As the battle against cyber fraud continues, it is clear that the weakest link in Kenya's financial system may be the people inside - tellers, agents, and officers with access to real-time customer records. It is a reminder that vigilance and transparency are crucial in maintaining the integrity of the financial sector and protecting the hard-earned savings of Kenyans.
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