Inside Kenya’s Mobile Banking Fraud Crisis: How Insider Collusion and Cyber Syndicates Are Draining Billions

When Sylvia Wanjiru received a million-shilling ($7,773) payment, a call from someone posing as her bank’s customer service followed almost instantly. The timing was too precise to be random. Later, when her parents lost modest pension payments to similar scams, the pattern became clear—fraudsters were monitoring customer accounts in real time.

This is the new face of Kenya’s cyber fraud crisis. Victims describe calls or phishing texts arriving within minutes of deposits, suggesting collusion between fraudsters, bank staff, and mobile money agents. Pensioners, traders, and salaried workers have become easy targets in what insiders call a “shadow industry.”

Cyber Threats on the Rise

According to the Central Bank of Kenya (CBK), reported cases of cyber fraud in the banking sector more than doubled in 2024, from 153 to 353. The amount at risk surged to KES 1.9 billion ($14.7 million), with actual losses climbing to KES 1.5 billion ($11.6 million). The Communications Authority of Kenya also flagged 7.9 billion cyber threats in the first eight months of 2025, double the previous year, underscoring how digitisation has expanded Kenya’s attack surface.

Yet, insiders argue the true scale is worse. A former compliance officer described operations in Nairobi’s outskirts resembling call centres, where young recruits—often lured by “customer service” job ads—use stolen account data to impersonate bank officials. Pay is commission-based, tied to how much money is siphoned. Police corruption, they add, shields these syndicates.

The Biggest Banks Under Fire

Fraudsters target Kenya’s retail giants—Equity Bank, KCB Group, and Co-operative Bank—which collectively serve over 50 million customers. The schemes thrive in high transaction volumes, hiding illicit transfers amid legitimate activity.

In one case, Equity Bank reported losses of KES 1.5 billion ($11.6 million) in 2024, initially framed as a “hacking incident.” Investigators later alleged insider collusion with property developers to siphon money via disguised salary transfers. In April 2025, a teacher in Mumias was killed after withdrawing KES 285,000 ($206), allegedly tracked by rogue bank tellers working with criminals.

Banks Strike Back

In response, lenders are purging compromised staff. KCB, NCBA, Absa, and Co-op Bank have quietly dismissed employees, while Equity Group CEO James Mwangi announced in May that 1,500 workers were fired to protect the bank’s integrity. “It doesn’t matter how many I will lose. I will protect the customers and the bank,” he declared.

The Trust Deficit

The line between cyber fraud, insider theft, and organised crime is increasingly blurred. Many victims never report, either due to embarrassment or low sums lost. This underreporting, experts warn, understates the CBK’s official loss figures and deepens public mistrust.

As Kenya’s financial system grows more digital, its weakest link may not be firewalls or systems—but insiders with access to real-time customer data. Without restoring trust, banks risk an erosion of confidence that technology alone cannot fix.