Detectives from the Directorate of Criminal Investigations (DCI) have arrested eight suspects believed to be behind a Sh500 million fraud on Fuliza overdraft service.
DCI said in a statement on their Twitter handle that the detectives uncovered a high level syndicate where scammers obtained close to Sh500 million through a popular mobile phone platform supported by mobile communication service provider, Safaricom.
“The service provider through its Fuliza overdraft service where customers can complete their MPESA transactions even when they do not have enough funds in their M-PESA account, lost the money in a well coordinated scheme by eight young men based in Nakuru and Trans-Nzoia counties,” the statement reads in part.
According to DCI, the eight suspects who were found in possession of thousands of Safaricom and Airtel SIM cards were using fraudulently generated identity cards numbers to register the SIM cards before proceeding to borrow money through the application.
“Detectives began investigations into this well choreographed fraud after a report was filled to the Banking Fraud Investigations Unit (BFIU) in August 2022, after the managers of the fund detected an unusual spike in Fuliza loan uptakes that were way above their performance scale and the borrowers were not repaying the loans,” the statement further reads.
Sleuths from BFIU say over 123,000 new mobile phone numbers opted into fuliza and took up loans in January 2022. Thereafter, the SIM cards were either fraudulently vacated or switched off and efforts to reach the customers turned futile.
“It is after further investigations that detectives realized that the SIM cards had been registered fraudulently by one of the suspects, who is suspected to have access to the National Registration Bureau database, where he develops falsified identity numbers used in the high profile fraud.”
DCI identified one Peter Gitahi as the mastermind, who after registering the SIMs he would sell them to his accomplices based in Nakuru to perpetuate the fraud.
“Some of the lines had been registered as Safaricom agents where the borrowed funds would be deposited to personal bank accounts belonging to the individuals, disguised as Mpesa float,” the statement read.
DCI further said that the suspects would initially borrow money and repay thereby improving their credit scores, until the SIM cards achieved their limits when they would borrow for the last time before disposing the SIM card.
“The suspects who live large in an apartment at Kiamunyi, have through their craft acquired 2 brand new Subarus, one Toyota Mark X, a Toyota Probox and two motorbikes for their ease of movement,” DCI said.
“Detectives are currently interrogating the suspects for more insights into the high level fraud before arraigning them in court.” Read the statement.
ALSO READ: DCI reacts on claimed Wetang’ula gold scandal audio
