Title: Equity Bank in Kenya Suffers $2.1 Million Debit Card Fraud: 500 Accounts Compromised

Overview

• Equity Bank, Kenya’s leading financial institution, falls victim to a major debit card fraud case.
• An estimated $2.1 million was stolen and distributed to over 500 bank and mobile money accounts.

Investigation Details

Daring Heist Executed with “Card-not-Present” Scam

• The Directorate of Criminal Investigation (DCI) reports $2.1 million was siphoned off from Equity Bank.
• DCI claims that over 500 bank and mobile money accounts were compromised.
• A fraud detective at the DCI, on condition of anonymity, confirms the incident to TechCabal.

Arrest of 19 Suspects

• 19 suspects have been apprehended in connection with the fraud case.
• Equity Bank declines to comment when contacted by TechCabal.

Financial Impact and Transaction Details

• Preliminary investigations indicate approximately KES 179.6 million ($1.3 million) was fraudulently disbursed from Equity Bank’s General Ledger between April 9, 2024, and April 15, 2024.
• KES 63 million ($478,360) was transferred to mobile wallet service, Safaricom.
• KES 39 million ($296,015) was transacted to eleven commercial banks.

Fraudulent Activities on the Rise in Kenya’s Financial Sector

• Kenyan banks lost approximately $130 million in 2023 due to cybercrimes.
• Over $600 million was flagged as suspected card fraud, corruption, and terrorism financing by the Kenya Financial Reporting Centre (FRC) between 2020 and July 2023.

Unreported Fraud Cases

• Most fraud cases in Kenya’s financial sector go unreported.
• The Central Bank of Kenya (CBK) closely monitors these resolutions.

Tech Spending to Combat Banking Fraud

• Local banks are ramping up their technology spending to effectively combat fraud.

Stay Informed

Stay tuned for further updates on this developing story.