In the wake of a spike in financial fraud in the country, Kenyans reportedly lost more money through Savings and Credit Cooperative Organisations (SACCOs) in 2024.
A Finacess report published by the Kenya National Bureau of Statistics (KNBS) revealed that internal fraud in SACCOs was the most prevalent form of money loss at 71 per cent.
In the same period, 70 per cent of Kenyans reportedly lost their money through accidental mobile money transfer services. KNBS report reveals that the victims lost the money after they accidentally sent the funds to known and unknown people.
19 per cent of mobile money users disclosed that they lost their money due to internal fraud by money transfer service providers while 15 per cent claimed they lost money through reversals.
Internal fraud at pension schemes also emerged as one of the most common ways Kenyans lost money this year, 66 per cent of Kenyans who rely on pension schemes were allegedly conned.
A pension scheme is a type of long-term savings plan where an employee or worker can save regularly throughout their work life with an expectation of a refund once they retire.
KNBS further highlighted that 56 per cent of Kenyans who undertook the survey reported that they lost money through internal bank frauds including agents' fraud and reversals.
Meanwhile, 46 per cent of respondents reported that they lost money through Micro Finance Institutions (MFIs). According to the victims, internal fraud at the MFI led to massive loss of funds.
Kenyans who depend on mobile banking systems were not left behind, 37 per cent of Kenyans who save through mobile banking reportedly lost their money. The victims claimed that they lost their money as a result of internal factors.
The latest development comes barely a fortnight after a report by Interpol unearthed a string of cybercrime activities in Kenya that led to the loss of about Ksh1.1 billion this year.
According to Interpol, an investigation conducted between September 2 and October 24 exposed how hackers stole the funds through fraudulent scripts after altering the banking systems' security protocol.
The monies were later channelled to companies in three countries including the United Arab Emirates (UAE), Nigeria and China. The funds were also channelled to digital asset institutions offering trading and financial services.
