Detectives are investigating a new wave of cyber fraud targeting retired civil servants, with fraudsters siphoning off their lump sum retirement benefits just days after the funds are deposited into their accounts.
The Directorate of Criminal Investigations (DCI) cybercrime unit reports being overwhelmed with complaints from retirees who have fallen victim to these scams.
How the Scam Works
According to investigators, fraudsters are spoofing banks’ customer care telephone numbers or using numbers that closely resemble official bank contacts—often differing by just a single digit. This subtle manipulation makes it easier to convince retirees that they are speaking with legitimate bank representatives.
Authorities suspect that the fraudsters may have inside sources within banks who provide information about retirees receiving large deposits. Once they identify a target, the criminals initiate contact, posing as bank officials.
The scam typically unfolds in the following steps:
- Initial Transaction: The fraudsters convince the victim to authorize a small transfer—usually between KSh 100,000 and KSh 150,000—to a designated account. This step is meant to build trust and create an illusion of a legitimate banking process.
- Spoofed Follow-Up Call: The scammers then call back using a spoofed bank number, claiming to be customer care representatives. They warn the victim of “suspicious activity” on their account and offer to “help secure their funds” before more money is withdrawn.
- Guided Transfers: Having gained the victim’s trust, the fraudsters instruct them to use their bank’s USSD code to transfer money in batches to accounts dictated by the criminals.
By the time the victim realizes the deception, their entire retirement savings have been transferred to unknown accounts in different banks, making recovery nearly impossible.
Police Urge Caution
DCI Director Mohamed Amin has warned Kenyans to be vigilant, emphasizing that fraudsters are constantly devising new ways to defraud unsuspecting individuals.
“The criminals are not sleeping. They are working daily to trick and defraud their targets. We urge people to be extremely cautious when dealing with callers claiming to be bank officials,” said Amin.
Authorities have already arrested some suspects linked to the scam, and investigations are ongoing to track down more members of the fraud ring.
How to Protect Yourself
- Verify Caller Identity: If you receive a call from someone claiming to be from your bank, hang up and call the official customer care number listed on your bank’s website.
- Never Share Personal Information: Banks will never ask you to disclose your PIN, passwords, or OTP codes over the phone.
- Be Skeptical of Urgency: Scammers create a sense of urgency to pressure you into acting quickly. Take your time to verify any claims.
- Visit Your Bank in Person: If you are unsure about a banking issue, visit a branch instead of handling transactions over the phone.
As cyber fraud evolves, staying informed and cautious is the best defense. If you suspect you’ve been targeted, report the incident to the DCI or your bank immediately.