@TheStar

Mobile money: The Double-edged sword

4 days ago, 00:51

By: Abel Muhatia @muh ...

Pamela Momanyi, a business woman at Wakulima Market, received a message from an unknown number notifying her of Sh4,500 sent to her through M-Pesa.

The “sender” later called asking her to send back the cash - even if it was half - because it had been sent erroneously. She sent back the full amount without verifying the number, only to realise later she was conned. That is how Pamela joined a list of thousands of Kenyans who have lost billions of shillings to mobile money fraudsters.

A study released yesterday shows Kenyans lose an average of Sh15,000 per financial service transaction per month to suspect mobile phone calls and short message services.

Kenya Financial Transaction Fraud study indicates more than 70 per cent of Kenyans have been victims of financial fraud, or know someone who has.

Further, the data reveals one is more more likely to be conned through a mobile money transaction compared to ATM cards, online banking or use of cheques.

Forty-one per cent of mobile money consumers lose between Sh1,000 to Sh5,000 a month, 39 per cent of online bankers also lose the same amount of money in 30 days.

Most consumers who lose Sh15,000 and above per month use bank cheques while a majority of victims of online shopping lose upto Sh5,000 within the same period through mobile money or card transactions.

Suspect phone calls and SMS messages have been recorded as the most used forms of defrauding consumers at 73 and 57 per cent respectively. E-mails and social media followed at 19 and 17 per cent.

“While financial service transaction fraud is a global issue, Kenya has been a leader in the adoption of mobile and digital payments, which unfortunately brings with it a growing risk of fraud,” Myriad Connect general manager Fabien Delanaud said.

The report further states there is a rising trend where criminals leverage on SIM swaps or lost SIM cards to access bank and mobile money accounts.

“When a customer lets their operator know that their SIM card is damaged, lost or stolen, criminal groups gather personal data then pose as contract owners to secure a new SIM ,” Myriad business development manager Willie Kanyeki said.


Read More


Category: topnews news business

Suggested

1 hours ago, 18:22
@StandardMedia - By: Geoffrey Mosoku
KDF soldier held in probe on construction worker's death

A soldier has been arrested following the killing of his 26-year-old neighbour, who was abducted by gunmen outside their home in Kiambu. ...

Category: topnews news
2 hours ago, 18:12
@DailyNation - By: Afp
'Africa real' World Cup winners, says Venezuela's Maduro

Two of France's goalscorers against Croatia have African roots. ...

Category: topnews news sports
1 hours ago, 18:32
@TheStar - By: Lillian Mutavi
KPLC bosses granted bail, travel documents confisticated

Suspended KPLC directors have been granted Sh1million bond each or Sh2 million bond with a surety of the same after three days in police custody.Chief magistrate Douglas Ogoti also ordered the suspect ...

Category: topnews news
2 hours ago, 18:18
@TheStar - By: Nancy Agutu @nanc ...
'It's cold my lips got stuck': South African winter forces Obama to buy coat

Former US president Barrack Obama was on Tuesday forced to buy a coat in the mall after forgetting about South Africa's 'Winter' month."I forgot my geography and the fact that its Winter in South Afri ...

Category: topnews news
2 hours ago, 17:59
@DailyNation - By: Collins Omulo
Former internationals land City Hall jobs

The two former internationals will be members of the Sports Committee. ...

Category: topnews news
2 hours ago, 17:59
@DailyNation - By: Sam Kiplagat
Court releases Kenya Power bosses

A Nairobi court has granted bail to senior Kenya Power managers accused of abuse of office. ...

Category: topnews news

@TheStar

Mobile money: The Double-edged sword

4 days ago, 00:51

By: Abel Muhatia @muh ...

Pamela Momanyi, a business woman at Wakulima Market, received a message from an unknown number notifying her of Sh4,500 sent to her through M-Pesa.

The “sender” later called asking her to send back the cash - even if it was half - because it had been sent erroneously. She sent back the full amount without verifying the number, only to realise later she was conned. That is how Pamela joined a list of thousands of Kenyans who have lost billions of shillings to mobile money fraudsters.

A study released yesterday shows Kenyans lose an average of Sh15,000 per financial service transaction per month to suspect mobile phone calls and short message services.

Kenya Financial Transaction Fraud study indicates more than 70 per cent of Kenyans have been victims of financial fraud, or know someone who has.

Further, the data reveals one is more more likely to be conned through a mobile money transaction compared to ATM cards, online banking or use of cheques.

Forty-one per cent of mobile money consumers lose between Sh1,000 to Sh5,000 a month, 39 per cent of online bankers also lose the same amount of money in 30 days.

Most consumers who lose Sh15,000 and above per month use bank cheques while a majority of victims of online shopping lose upto Sh5,000 within the same period through mobile money or card transactions.

Suspect phone calls and SMS messages have been recorded as the most used forms of defrauding consumers at 73 and 57 per cent respectively. E-mails and social media followed at 19 and 17 per cent.

“While financial service transaction fraud is a global issue, Kenya has been a leader in the adoption of mobile and digital payments, which unfortunately brings with it a growing risk of fraud,” Myriad Connect general manager Fabien Delanaud said.

The report further states there is a rising trend where criminals leverage on SIM swaps or lost SIM cards to access bank and mobile money accounts.

“When a customer lets their operator know that their SIM card is damaged, lost or stolen, criminal groups gather personal data then pose as contract owners to secure a new SIM ,” Myriad business development manager Willie Kanyeki said.


Read More

Category: topnews news business

Suggested

1 hours ago, 18:22
@StandardMedia - By: Geoffrey Mosoku
KDF soldier held in probe on construction worker's death

A soldier has been arrested following the killing of his 26-year-old neighbour, who was abducted by gunmen outside their home in Kiambu. ...

Category: topnews news
2 hours ago, 18:12
@DailyNation - By: Afp
'Africa real' World Cup winners, says Venezuela's Maduro

Two of France's goalscorers against Croatia have African roots. ...

Category: topnews news sports
1 hours ago, 18:32
@TheStar - By: Lillian Mutavi
KPLC bosses granted bail, travel documents confisticated

Suspended KPLC directors have been granted Sh1million bond each or Sh2 million bond with a surety of the same after three days in police custody.Chief magistrate Douglas Ogoti also ordered the suspect ...

Category: topnews news
2 hours ago, 18:18
@TheStar - By: Nancy Agutu @nanc ...
'It's cold my lips got stuck': South African winter forces Obama to buy coat

Former US president Barrack Obama was on Tuesday forced to buy a coat in the mall after forgetting about South Africa's 'Winter' month."I forgot my geography and the fact that its Winter in South Afri ...

Category: topnews news
2 hours ago, 17:59
@DailyNation - By: Collins Omulo
Former internationals land City Hall jobs

The two former internationals will be members of the Sports Committee. ...

Category: topnews news
2 hours ago, 17:59
@DailyNation - By: Sam Kiplagat
Court releases Kenya Power bosses

A Nairobi court has granted bail to senior Kenya Power managers accused of abuse of office. ...

Category: topnews news
Our App