How bank customers lost Sh517m in IT system fraud

Third party service providers pose risks to banks even as they search for secure systems to keep fraudsters at bay.

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A Kenyan bank lost Sh517 million ($4 million) after contractors compromised the security system for cards, enabling unauthorised wallet creation and laundering of funds through cryptocurrency.

Kenya’s financial intelligence unit, Financial Reporting Centre (FRC), says in a new report that the incident was among the rising cases of cybercrime involving altering of card systems by fraudulent service providers.

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