Safaricom terminated the employment of 33 individuals in the fiscal year ending March 2023 due to fraud-related offenses, marking a 37.5 percent increase from the 24 dismissals in the previous year.
The telecommunications giant reported that most of the fraudulent attempts were aimed at SIM-swap services, which they countered through proactive monitoring and digital solutions. SIM swapping is a method employed by criminals where they falsely claim to have lost their SIM card and persuade a mobile operator to replace it. This enables them to gain unauthorized access to the victim’s contacts, banking information, emails, and social accounts.
To combat such issues, Safaricom has implemented a whistle-blowing policy, which allows for anonymous reporting of fraudulent activities. In addition, they regularly conduct customer awareness campaigns to educate the public.
Online platforms have seen an increase in consumer complaints about unauthorized fund transfers and unsanctioned borrowing from M-Pesa wallets. In response to these concerns, Safaricom introduced an “ATM Vicinity Check” technology in March, ensuring that cash withdrawals can only occur when the customer is physically near the ATM. This solution was offered to commercial banks for free and aimed to prevent cases of banking fraud where criminals use stolen cards and information to withdraw funds from ATMs.
