DCI exposes how bank employees steal money from their customers’ accounts

The Directorate of Criminal Investigations on Monday highlighted several cases of fraud by bank employees, much to the surprise of many Kenyans.

Through a series of Twitter posts, the DCI revealed that 37 fictitious companies were registered with the Kenya Commercial Bank through fraudulent point of sale card transactions.

“Evidence gathered showed that 37 fictitious merchant companies were registered with KCB to facilitate the #fraud through fraudulent point of sale card transaction claims which were approved by the #four suspects & money sent to the companies’ account as POS card settlements,” read the tweet.

It also emerged that the funds were shared through M-Pesa among: Benson Mwai Karugu, Edmund Kirturi Mutua, Evans Kenda Kiplagat & Macdonald Mochama Mongwe.

The suspects were arrested on August 17 2018 and will be charged today for allegedly stealing Sh72,619,951.83 which was transferred from KCB in smaller amounts to accounts domiciled with various banks in Nairobi,Mombasa,Eldoret and Malindi.

In a separate incident, Abel Onyango, a Relations Officer with Family Bank, was accused of withdrawing Sh1.5 million from customers’ accounts without their knowledge.

Elsewhere, Peter Sungu Nyakomitta, a Branch Manager with Diamond Trust Bank( DTB) in Kisii was arrested and arraigned in Milimani Law Courts for stealing Sh25 million from customers, fixed account numbers.

The theft was discovered after an internal reconciliation process was done.

Speaking during a meeting held at the Radisson Blu Hotel in Nairobi, DCI boss George Kinoti warned regulators, banks and mobile service providers that most frauds are perpetrated by their own employees.

He advised them to do a thorough background check before engaging them in whatever capacity.