Equity Bank: Employee Allegedly Colludes with Criminals to Steal KSh 179.6 Million ($1.3 Million)

Overview

An Equity Bank employee is under investigation for their involvement in a financial fraud scheme that resulted in the loss of an estimated KSh 179.6 million ($1.3 million) between April 9 and 15, 2024.

Incident Details

The preliminary investigation exposed the transfer of funds to 551 bank accounts and mobile money wallets.
The insider allegedly installed malware in the bank’s main system to avoid detection.
A total of approximately $2.1 million was transferred before the suspicious activity was detected.

Consequences

Equity Bank restricted all affected accounts and apprehended 59 suspects.
Some recipients returned the illicit funds, while others remain unidentified and traced.
Large transactions to Safaricom (KSh 63 million) and commercial banks (KSh 39 million) came to light, causing significant financial damage to Equity Bank.

Investigation andResponse

Equity Bank and the Central Bank of Kenya (CBK) have remained silent on the matter.
The Directorate of Criminal Investigations is utilizing mobile phone data to apprehend remaining suspects.

Background

Reports suggest that bank employees colluding with criminals to defraud customers is a common occurrence in Kenya.
Many incidents fail to come to public light due to concerns of damaging reputations and potentially losing customers.

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