Individuals and banks should be more vigilant to avoid being defrauded

There has been a noticeable rise in the level of fraud risk in Kenya, impacting numerous individuals and families. This increase is especially pronounced as many of us embrace the convenience of digital platforms and mobile banking. The rapid expansion of these technologies has led to the development of increasingly sophisticated fraud techniques, often exploiting the vulnerabilities created by our new-found digital connectivity.

Recent data by Concryt shows that Kenya, alongside Ethiopia, South Africa, and Nigeria, grapple with high levels of search activity related to Authorised Push Payment (APP) fraud. A recent report by Kaspersky Africa indicated a staggering 438 per cent increase in fraud incidents in Kenya and Nigeria and South Africa also experiencing significant rises. These numbers reflect real pain points for many people, showing how rampant fraud can undermine the trust we place in digital transactions.

A troubling example of this shift occurred when AI-generated YouTube ads impersonated executives from a well-known investment firm in Kenya, leading unsuspecting viewers to deceptive links. This incident highlights just how vulnerable we all are as cybercriminals—not necessarily local to us—can exploit our growing digital engagement to orchestrate scams that target our hard-earned savings.

In light of these escalating threats, the Kenyan banking sector has worked tirelessly to enhance security measures, implementing technologies like Chip and PIN to guard against card skimming and improve the safety of online transactions. 

Despite these commendable efforts, the evolving tactics of cybercriminals mean that we must remain vigilant. They have moved beyond simple impersonation to more sophisticated social engineering schemes that can manipulate individuals into revealing sensitive information. For instance, users may receive seemingly harmless messages, particularly around paydays, requesting assistance in ways that can lead to significant financial loss.

We must also be increasingly aware of tactics like phishing where attackers disguise their requests under the appearance of trusted businesses or contacts. Baiting incidents are also on the rise as enticing offers lure unsuspecting individuals to click on harmful links, often leading to heart-wrenching consequences.

As we navigate this complex digital landscape, it is vital for both individuals and businesses to stay informed about the potential risks of cyber fraud. Impersonation remains a deceptive tactic that can create significant stress; fraudsters often pose as friends or colleagues, chipping away at the trust we have built with those around us.

In response to the rising prevalence of these social engineering scams, many Kenyan lenders are proactively enhancing financial literacy among their customers to raise awareness about common scams, including impersonation calls, fraudulent SMS, and misleading emails that request sensitive information.

Banks are encouraging customers to adopt protective practices to keep themselves safe, emphasising the importance of not sharing personal or sensitive details such as usernames, passwords, OTPs, and even basic information like family names or dates of birth. They've also stressed the need for caution when clicking on unfamiliar links or downloading attachments from unknown sources.

While the threat of fraud poses considerable challenges, it serves as a reminder of the need for unity and collaboration within the financial sector. By working together and sharing information, bankers can create a more secure environment for growth and trust.

As the complexity and scale of cyber-attacks continue to evolve, especially with innovations like AI-generated deepfakes, it is crucial for bankers to adapt new strategies and strengthen relationships with customers. customers should continuously be informed about suspicious activity and supported in identifying genuine bank representatives.