Detectives Uncover SIM-Swap Fraud Scheme Targeting Accounts of Wealthy Dead Kenyans
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Detectives have uncovered an alleged SIM-swap fraud scheme targeting the bank accounts of wealthy Kenyans who had recently died, following an investigation into the theft of Ksh 2.8 million from the accounts of a deceased man.
The investigation began in February 2021 after Alex Ngata noticed that his late father’s phone had suddenly lost network service.
According to a statement dated August 20, Alex suspected something was wrong and went to a Safaricom shop to replace the SIM card.
However, when the new SIM was activated, a stream of previously undelivered text messages appeared on the phone, including an alert that substantial transactions had been taking place on his late father’s bank accounts.
The messages also indicated that mobile banking applications had recently been installed and configured on an unknown device.
SIM-Swap Fraud: DCI Uncovers Alleged Scheme Targeting Deceased Kenyans
Following the suspicious move, Alex Ngata subsequently visited NCBA Bank, Equity Bank and Co-operative Bank to establish what had happened.
The banks confirmed that approximately Ksh2.8 million had been withdrawn from his late father’s accounts through mobile banking platforms, including the NCBA App, Eazzy Banking and MCo-op Cash, and transferred to the mobile number 0716 546633.
Therefore, armed with bank statements, transaction records and the recipient’s phone number, Alex Ngata reported the matter to the Directorate of Criminal Investigations (DCI).
During the investigation, detectives conducted a registration check and reportedly made an unusual discovery: the number was registered in the name of Reverend Peter Kania, a former Secretary-General of the Presbyterian Church of East Africa (PCEA), who had already died.
The finding raised questions about how a phone number registered to a deceased person could remain active and facilitate financial transactions.
CRIB detectives also examined historical mobile-tower data to establish where the line was used to access banking applications.
The data showed that the SIM card remained active and continued connecting to mobile towers even after the reverend’s death.
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Bank Records Lead Investigators to Equity Insider
Detectives further questioned how the fraudsters could have known the precise balances in the deceased man’s bank accounts.
They noted that Cyber-auditors examined digital records on the banks’ internal systems, which record the credentials used whenever an employee accesses a customer’s private financial information.
According to the source, the audit flagged Equity Bank teller Eutycus Mutembei, whose credentials had allegedly been used to access the financial information of recently deceased and wealthy customers.
They noted that no apparent operational reason was found for the employee to have accessed the particular accounts under investigation.
As investigators followed the digital trail, they allegedly uncovered a wider SIM-swap syndicate operating in Kenya.
Additionally, investigators said the alleged criminals monitored newspaper death announcements and obituaries to identify wealthy people who had recently died.
The suspects allegedly targeted the deceased’s bank accounts, believing the accounts could remain active while relatives were occupied with funeral arrangements and the administration of the estates.
Also Read: Police Arrest Three Suspects Linked to Ksh 22.4 Million SACCO Fraud
How the Alleged Operation Works
Meanwhile, the alleged scheme depends on access to confidential banking information.
Once a wealthy deceased person was identified as a target, an alleged insider would provide information about the person’s bank accounts and balances.
The syndicate would then allegedly carry out a fraudulent SIM swap, taking control of the victim’s mobile number.
With access to the number, the fraudsters could allegedly intercept one-time passwords (OTPs) and other banking notifications needed to access mobile banking services.
The stolen funds would then be transferred to other accounts or mobile numbers controlled by the alleged fraudsters.
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A photo showing the suspects arrested during the detectives’ investigation into the alleged SIM-swap fraud following the withdrawal of unauthorised money from a deceased account. Photo/ Bush / X