This archive report was first published on 21 May 2020.
On May 21, 2020, KCB Group, Kenya's largest bank by assets, fired 13 employees accused of fraud.
The bank implemented an automated fraud management system in 2019 to minimize losses and detect fraud on a timely basis.
According to the bank, the system can process large volumes of data at high speeds, identify and act on new unusual behavior, and increase operational efficiency by augmenting fraud investigation efforts.
"We built in mandatory checks into our processes/operations as fraud prevention measures," said the bank.
Notably, the bank dismissed 34 employees accused of fraud and professional negligence in 2017, 31 in 2016, 33 staff in 2015, and about 90 employees in 2014, highlighting a general decrease over the years in the number of bankers sent home for stealing cash or conning customers.
However, the bank reported 689 unsuccessful internal fraud attempts last year compared to 319 in 2018.
KCB has adopted the Association of Certified Fraud Examiners definition of fraud as being all those activities involving "dishonesty and deception that can drain value from a business, directly or indirectly, whether or not there is personal benefit".
It's worth noting that KCB was among five banks fined by the Director of Public Prosecutions Noordin Haji to avoid being prosecuted for failing to report suspicious transactions linked with the theft of funds at the National Youth Service.
