Kenyan authorities have arrested eight individuals implicated in a sophisticated scam that defrauded Safaricom’s Fuliza service of over Ksh444 million.
The suspects, aged between 24 and 30, were apprehended in a coordinated operation across Nakuru and Trans-Nzoia counties, following a detailed investigation by the Directorate of Criminal Investigations (DCI).
The fraudsters allegedly registered approximately 123,000 Safaricom SIM cards using falsified identity documents, which were then used to access Fuliza, Safaricom’s overdraft facility.
They would borrow funds, often not repaying the loans, and then deactivate or dispose of the SIM cards to evade detection. This operation not only exploited the trust-based system of mobile lending but also highlighted vulnerabilities in SIM card registration processes.
Investigations revealed that one of the masterminds had access to the National Registration Bureau database, enabling the creation of fake identity numbers used in the scam.
The group’s modus operandi involved initially repaying small loans to build creditworthiness, only to max out the limits and abandon the accounts later.
The arrest was preceded by the recovery of substantial evidence, including over 14 mobile phones used for SIM registration, 6 laptops, numerous SIM cards, and documents related to bank accounts and vehicle purchases, indicating the proceeds of their fraudulent activities.
Among the items seized were also over 200 ATM cards from various banks, suggesting a broader network of financial manipulation.
This case has sparked a broader discussion on the security measures of mobile network operators and the need for stricter verification processes during SIM card registration.
Safaricom, in response, has promised to review its security protocols to prevent such large-scale fraud in the future.
The suspects are currently in custody awaiting charges that could include fraud, forgery, and unauthorized access to computer systems.
Legal experts suggest that this case might set a precedent for how financial crimes involving mobile technology are prosecuted in Kenya, potentially leading to more robust legislative measures to protect consumers and service providers alike.
