Kenya Named in Ksh48 Billion Fraud Targeting 6 Major U.S. Banks
Kenya has once again been placed on the spot after the United States government linked the country to a multi-billion-shilling fraud scheme that targeted more than 3,000 Americans and six major U.S. banks.
The incident involved the hacking of several bank accounts holding about Ksh48 billion before the mastermind allegedly shipped most of his possessions to Kenya as he prepared to flee the U.S.
Federal prosecutors accused a network of 14 suspects of using stolen identities, fake documents, and corrupt banking insiders to gain access to victims’ accounts
In a statement on Tuesday, November 3, the U.S. Department of Justice said the fraud affected six banks, including Bank of America, whose customers were among those targeted.
According to U.S. authorities, the fraud happened between July 2023 and November 2024, with suspects accused of obtaining victims’ personal information and impersonating legitimate account holders.
The suspects allegedly manipulated victims’ phone lines through SIM swapping and spoofing to intercept security codes used by banks to verify transactions and grant access to accounts.
The network also reportedly relied on insiders working in banking and telecommunications institutions to bypass security checks and facilitate unauthorised access to victims’ accounts.
Prosecutors further revealed that the suspects attempted several fraudulent transactions, including a Ksh258 million transfer to a financial institution in the United Arab Emirates.
During the operation, the ringleader allegedly shipped most of his possessions to Kenya before travelling with his family to New York, where they planned to board a flight to Malaysia.
According to prosecutors, they believe the suspect intended to purchase a home in Malaysia, but was arrested at John F. Kennedy International Airport before he could leave the U.S.
The latest investigation comes amid increased scrutiny of alleged financial fraud schemes in the U.S. involving networks linked to Kenya, including the recent student financial aid fraud scandal.
Prosecutors alleged that suspects created fake student accounts using stolen American identities and submitted fraudulent applications for government-backed education loans and grants, with some of the proceeds allegedly transferred to Kenya.
