KCB Fires Employees Hacking Bank Accounts

The KCB Group has terminated the employment of 34 employees across its regional operations as part of a crackdown on fraud and misconduct.

In its 2023 Sustainability Report, released in August, KCB stated that it made the decision in line with its zero-tolerance policy toward criminal behavior.

“KCB enforces a strict zero-tolerance policy on tax evasion, fraud, and facilitation of unlawful conduct. This applies to all employees, agents, and third parties operating on behalf of the Group,” the bank said in the report.

25 out of the 34 employees fired were implicated in criminal activities in Kenya, with the remaining nine in Rwanda.

The move comes as KCB and other banks grapple with a sharp rise in cybercrime and financial fraud, especially in the mobile banking sector.

KCB Fraud Attempts

KCB reported that it blocked 339 fraud attempts last year, safeguarding Ksh212.9 million in customer funds, up from 249 attempts in 2023.

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The bank has now rolled out a new mobile banking platform powered by artificial intelligence and machine learning in a bid to outpace the fraudsters.

“The planned implementation of a new mobile banking platform, leveraging AI and machine learning models, aims to enhance customer security and combat fraudulent activities,” KCB said.

The numbers revealed the scale of the threat, with CBK reporting total sector-wide losses of Ksh1.59 billion due to cybercrime and fraudulent wire transfers in 2024, nearly four times the Ksh412 million lost the previous year.

Despite increased efforts to end fraud, including a steady rise in frustrated attempts from Ksh137.5 million in 2022 to Ksh362.7 million in 2023, financial institutions remain in the crosshairs of increasingly sophisticated schemes.

Mobile Banking Fraud in Kenya

Kenya is now facing a growing threat from tech-savvy criminals exploiting the very platforms that once fueled financial inclusion.

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In 2024, mobile banking fraud increased by 344%, with criminals siphoning off Ksh 810.68 million, up from Ksh 182.41 million the previous year, according to data from the Central Bank of Kenya (CBK).

Fraud incidents across the sector more than doubled to 353 in 2024, compared to 173 in 2023.

The CBK warned that rising financial crime is placing banks under increasing pressure, with some institutions at risk of falling below capital requirements.

“Successful attacks lead to an increase in operational cost to restore services and a decline in revenue because of distributed denial of services,” the CBK noted in a separate report.

“The losses will lead to capital decline, leading some banks to fail the test in terms of their capital dropping below the required minimum.”

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