Senator Goes After CEOs Over Bank Fraud Trick
Nominated Senator Tabitha Mutinda on Wednesday, February 22, tabled a memorandum in the Senate requesting a statement from commercial bank owners and Chief Executive Officers (CEOs) on the measures taken to tame cases of mobile banking fraud.
In the statement seen by Kenyans.co.ke, the Senator urged the Senate Committee on Finance and Budget to investigate and report to the House on issues including the measures taken by Banks to prevent fraud cases in the future.
In addition, the senator asked the committee to establish the actions taken by the bank to seek answers from the regulator on the measures taken to stem the trend.
A file image of the Central Bank of Kenya in Nairobi.
The Senator also submitted a request for the measures put in place by the banks to ensure affected customers in the highlighted cases are compensated for the losses incurred.
“I rise, pursuant to Standing Order 53(1), to seek a Statement from the Standing Committee on Finance and Budget regarding allegations of fraudulent activities involving customer accounts at various Kenyan banks,” the statement read in part.
Mutinda’s move came weeks after public outrage over the increased cases of fraud targeting bank users with some customers complaining of losing their entire savings.
The February case joined a string of other complaints where customers filed petitions against banks over fraud cases, including cases where some accounts were emptied to the last coin.
In its response, one of the commercial banks advised its customers to avoid public WiFi while making transactions on bank accounts, terming it as a common loophole used by fraudsters.
In addition, mobile banking service providers have in the past urged customers to ignore calls from unauthorized numbers which often ask them to disclose security details of bank accounts.
Focus will now shift to the Senator Ali Roba-led committee as the Senate looks to establish the extent of the growing trend and recurrent cases of fraud.
CEOs and other stakeholders within the banking sector will appear before the committee for grilling before submitting a report to the Senate once the request is approved.
Individuals at a banking hall.