By JACKSON OKOTH
The amount is equivalent to a full year profit for small or medium-sized banks in Kenya.
“This figure is significantly understated because actual fraud statistics are difficult to determine owing to numerous unreported cases,” said Robert Nyamu, a forensic director at Deloitte.
Nyamu made the remarks yesterday while presenting an overview of a report prepared by Deloitte East Africa on
According to the report, crime statistics by the one of the East African countries police force indicates a 14 per cent increase in economic crimes from 2,662 reported cases in 2010 to 3,036 last year.
The Deloitte report notes that while electronic platforms were introduced by the banking industry to speed up clearance of paper cheques, these modes have become popular targets for techno-savvy fraud rings.
The insurance industry, a key pillar of the financial system, has also been a target for fraudsters due to the huge funds it is sitting on.
“Many institutions prefer internal resolution of fraud cases than referral to the law enforcement agencies, mainly due to reputational risk,” said Nyamu.