Kenya has been mentioned in a major fraud investigation in the United States involving 14 suspects accused of stealing money from bank accounts belonging to more than 3,000 Americans.
US prosecutors say the group used stolen personal information, fake documents and help from insiders in banking and telecommunications institutions to access victims’ accounts at six major banks.
The fraud is estimated to have involved about KSh48 billion and took place between July 2023 and November 2024, according to the US Department of Justice.
In a statement issued on Tuesday, November 3, the department said the suspects allegedly impersonated legitimate account holders to gain access to their money. Bank of America was among the six financial institutions whose customers were targeted.
The investigators allege that the suspects utilized the SIM card swapping and telephone number spoofing tactics to gain control over the phone lines of the victims and steal the security codes from the banks sent to authenticate the transactions.
They further depended upon the individuals working within banks and telecommunication companies to bypass the security measures and access the accounts.
One such transaction included an attempted transfer of KSh258 million to a financial institution in the United Arab Emirates.
How Kenya Was Linked to the Investigation
Kenya came into the picture after the alleged mastermind reportedly began moving his belongings out of the United States as he prepared to leave the country.
According to prosecutors, he shipped most of his possessions to Kenya before travelling with his family to New York. The family was reportedly planning to board a flight to Malaysia, where the suspect intended to buy a home.
However, he was arrested at John F. Kennedy International Airport before he could leave the United States.
The investigation is the latest case in which US authorities have raised concerns over fraud schemes allegedly involving networks with links to Kenya.
It follows a separate investigation into student financial aid fraud, in which suspects were accused of using stolen American identities to create fake student accounts and apply for government-backed education loans and grants.
Prosecutors in that case alleged that some of the money obtained through the fraudulent applications was transferred to Kenya.
