BD Insider 206: Absa Kenya suffers $716,565 fraud loss in 2022
In 2022, Absa Kenya lost $716, 565 to fraud attempts, the most common of which was 'card not present' fraud.
In today's newsletter, we bring you news about:
- $716,565 fraudulently extracted from Absa Kenya
We also curated other noteworthy stories that we covered this week and opportunities for female tech enthusiasts.
📰 The Weekend Brief
Absa Bank Kenya reports $716,565 fraud loss in 2022
The news: In a recent disclosure, Absa Bank Kenya has revealed a significant financial setback, with the bank losing KSh 107.7 million ($716,566) to fraudulent activities last year. Despite this loss, the bank was able to recover KSh 59.1 million ($393,213) of the total losses.
Why it matters: Fraud has become a persistent challenge within Kenya's financial sector, reflecting broader trends in the evolving landscape of financial crime. Research indicates a sharp increase in online fraud incidents in Kenya, with a fivefold surge observed in 2020. The prevalence of fraud is closely linked to the growing preference among customers for digital financial services and solutions.
One of the most common forms of fraud is "card-not-present" fraud, where unauthorised transactions occur without the physical presence of the customer at the point of purchase. This type of fraud primarily targets transactions conducted over the phone or online, where users provide their credit card details without presenting the physical card, making them vulnerable to fraudulent activities.
Zoom in: Absa Bank Kenya has adopted a comprehensive strategy to combat the fraud including executing four comprehensive social media awareness campaigns aimed at educating the public about the perils of online fraud. Additionally, a consumer and employee awareness initiative, conducted through messaging platforms, was implemented in the previous year. The bank also sent out 12 SMS alerts to customers to create an additional layer of protection against fraudulent activities.
Despite these efforts, the evolving nature of fraud remains a challenge, and its impact on financial institutions continues to be significant. Both financial institutions and customers need to stay vigilant and informed about the latest fraud trends and prevention measures.
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👀 What else happened this week?
- Nigerian banks are restricting neobanks: In response to growing fraud concerns Neobanks like Moniepoint, Kuda, Opay, and PalmPay are facing transaction restrictions imposed by Nigerian banks like Fidelity and Standard Chartered. A new report indicates that Fidelity has lifted the restriction.
- Alternative African BNPL platforms for smartphones: BNPL startups like Keza Africa and CD Care are vital for device financing in Africa amid rising living costs, bypassing government red tape.
- X introduced audio and video calls: X, previously known as Twitter, has expanded its services to include audio and video calls as it transitions into an all-encompassing app.
- WhereIsMy Transport shutdown: South African mobility startup WhereIsMyStartup has wound down operations after it failed to secure a new funding round.
💼 Opportunities
- Women Who Code fellowship: Because She Can has opened applications for their annual fellowship providing laptops, mentorship and internships to women in tech, targeting 10 awards this year. Apply by November 25.
- Interested in becoming a technical talent? The Nigerian Federal Ministry of Communications, Innovation & Digital Economy is accepting applications for its 3 Million Technical Talent Program. Learn more about the program.
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