Financial Crime World

Equity Bank in Kenya: $2.1 Million Debit Card Fraud - 19 Suspects Arrested

In a shocking financial incident, Equity Bank in Kenya fell victim to a debit card scam resulting in a staggering loss of $2.1 million. The country’s largest banking institution reported the fraud to the Directorate of Criminal Investigation (DCI).

Extent of Financial Loss

According to a letter penned by Equity Bank’s General Manager for Security, Gerald Munyiri, to the DCI, the fraudulent transactions occurred between April 9-15, 2024. The illegal proceeds were allegedly moved to over 500 bank accounts and mobile money accounts.

  • Approximately KSh 179.6 million ($1.3 million) was reported stolen from Equity Bank during this period.
  • The funds were transferred to various Equity Bank accounts, Safaricom, and eleven commercial banks in Kenya.

Collaborative Efforts

The banking institution is collaborating with Safaricom and the commercial banks to trace the illicit funds. This cooperation ensures effective tracking and addressing of the fraudulent transactions.

Suspected Fraud Scam

These fraudulent transactions, suspected to be a ‘card-not-present’ scam, saw cybercriminals exploiting stolen card details to execute unauthorized online shopping sprees.

Rising Fraud in Kenya’s Financial Sector

Prior to July 2023, the Financial Reporting Centre (FRC) flagged over $600 million that was tied to card fraud, corruption, and terrorism financing in Kenya’s financial sector (Hamade, 2023). This incident underscores the rising problem of financial fraud in the country.

New Legislation

Following this surge, Kenya’s National Assembly approved the Computer Misuse and Cybercrime (Critical Information Infrastructure and Cybercrime Management) Regulations, 2024. This new legislation aims to establish frameworks for detecting, monitoring, and addressing cybersecurity threats, scams, identity theft, and hacking within Kenya’s digital space.

Arrests and Ongoing Investigations

Equity Bank has reportedly arrested 19 suspects involved in the fraudulent activities and restricted all related accounts. The police are conducting ongoing investigations to unravel the masterminds behind this high-profile scam, and bring everyone associated with the crime to justice.

  • Restriction of Accounts: Equity Bank restricted all accounts involved in the fraudulent activity.
  • Arrest of Suspects: 19 suspects have been arrested.

Stay Vigilant

As financial fraud escalates, the banking sector, regulators, and law enforcement agencies remain vigilant in the fight against such crimes. Awareness and cooperation are crucial in preventing further losses and staying ahead of evolving cyberthreats.