How Nairobi Tech-Savvy Scammers Target 73 Million Mobile Accounts

In today’s interconnected world, protecting personal information has become crucial.

Kenya faces growing challenges in safeguarding consumer data and preventing fraudulent schemes. The TransUnion 2024 State of Omnichannel Fraud Report reveals that fraud reached unprecedented levels in 2023. Cybercriminals are increasingly stealing identity information from organizations and individuals, carrying out account takeovers, third-party fraud, and creating synthetic accounts. Data breaches in the United States rose by 15% from 2022 to 2023, with breach severity increasing by 11%.

In 18 selected countries and regions, over half of consumers reported being targeted by fraud attempts through various digital channels between September and December 2023. Suspected digital fraud outpaced transaction growth, accounting for 5% of all global digital transactions in 2023. High-risk account creation, particularly involving synthetic identities, posed a significant threat. In the United States, 13.5% of all global digital account creation transactions were suspected to involve synthetic identities, affecting various financial products.

These trends highlight the importance of robust security measures and consumer trust in digital transactions. Kenya faces unique challenges in combating digital fraud. With 73.3 million mobile money accounts as of December 2023, the country’s digital financial ecosystem is particularly vulnerable to various fraud schemes. Scammers operate in groups, often disguising themselves as brand promoters or hawkers in Nairobi’s Central Business District. Their tactics include SIM swap fraud, stolen ATMs, and exploiting money transfer codes.

To tackle these challenges, Kenya has organized consumer education with a focus on raising awareness about fraud risks, privacy protection, and safe digital practices across all age groups. Collaboration between government agencies, financial institutions, and technology providers has also been organized to share threat intelligence and best practices.