Fraud is one of the most serious corporate problems, and challenges in today’s business environment. In the banking industry, many frauds are perpetrated through falsified payment instruments including computer fraud, Card fraud and Mail order fraud that’s commonly referred to as internet fraud.
Evidence that Kenya is run by organised crime was provided yesterday when three suspects were arrested and charged with being part of a gang behind M-Pesa fraud in Nakuru County.
Via Twitter on Thursday, the Directorate of Criminal Investigations (DCI) said the three were part of an organized criminal gang that had stolen an unspecified amount of money from residents.
The suspects relied on a 22-year-old Lucy Muthoni Wanjiku who owned an M-Pesa shop that was used as a conduit
The three were arrested in Bondeni, Nakuru County, on Wednesday and several identity cards, mobile phones, cash and assorted SIM cards found.
Three suspects who are part of an organized criminal gang that has been defrauding the public lots of money thro’ Mpesa were arrested yesterday in Bondeni area, Nakuru by Detectives. Several IDs, Mobile Phones,Cash & Assorted SIM cards were confiscated. Suspects charged in Court. pic.twitter.com/qLu1ZguhV4
— DCI KENYA (@DCI_Kenya) December 13, 2018
Police carried out the raid following an outcry by members of the public. Detectives launched investigations and led them to their hideout and the base of their operations.
The suspects are said to be have been targeting both M-Pesa shop owners and customers.
Police have launched further investigations and looking for more suspects and the gang leader.
M-Pesa operators in the Nakuru and other parts have reported the loss of large amounts of cash in the last month.
Eldoret West Police Boss Samuel Mutunga (left) and a suspected M-Pesa fraudster Nickson Kipkoech alias Salim at Eldoret Police Station on May 22, 2017
Conmen have called customers to inform them that they have won money in a competition and, through a series of instructions, shepherded unsuspecting users to the point of sending money to the fraudsters as a prerequisite to accessing their ‘winnings’.
They have also got customers to reveal their year of birth (often, but insecurely, used as PIN), ID numbers and a few recent transactions and used the information to draw funds from their M-Pesa accounts.
In 2011, a convicted criminal serving time at the Kamiti Maximum Prison forged an ID card belonging to former Chief of the Kenya Defence Forces (KDF), Gen (Rtd) Jeremiah Kianga, and conned Kenyans of thousands of shillings with the promise of military jobs.
Can Mpesa fraud end?