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Africa Business News Fri, 18 Jun 2021

Kenya's financial services firms prime target for fraudsters

Kenya’s financial services sector players top the global list of institutions that have become a prime target of tech-savvy fraudsters preying on unsuspecting customers to swindle them of life savings stored in bank accounts, according to a new survey.

This development is likely to cause jitters to depositors whose confidence have been heavily shaken by collapse of three banks in quick succession and an increasing number of lenders violating statutory guidelines on liquidity and capital adequacy.

Preliminary findings of a survey by Credit Reporting agency TransUnion Africa shows that the identity details that people fill in visitors books while going to places such as offices, schools, companies, buildings and various organisations have become a soft target for conmen out to steal your cash.

The survey by TransUnion’s digital fraud solution dubbed TrueValidate shows that Kenyan banks are losing over Ksh13 billion ($121.49 million) every year to fraudsters through identity theft and loan stacking.

Identity theft is when fraudsters use stolen identities to wipe out customers’ bank accounts or mobile wallet accounts while loan stacking is when fraudsters take multiple loans using stolen identities.

According to the survey, identity theft has become dominant in the financial and telecommunication sectors.
Source: theeastafrican.co.ke