This archive report was first published on 21 May 2020.
Published on May 21, 2020, KCB Group, Kenya's largest bank by assets, has been dealing with a significant issue: fraud. In 2019, the bank sacked 13 employees accused of fraud, a slight increase from the 10 staff fired in 2018 for abetting fraud.
The 2018 incident led to the loss of an undisclosed amount of cash. To minimize such losses, KCB implemented an automated fraud management system in 2019. This system enables the bank to detect fraud on a timely basis across various banking channels, process large volumes of data at high speeds, and identify unusual behavior.
According to the bank, mandatory checks have been built into its processes to prevent fraud. A management-level disciplinary committee also decides on the consequences for cases depending on their severity.
Notably, the number of employees dismissed for fraud has been decreasing over the years. In 2017, 34 employees were let go, followed by 31 in 2016, 33 in 2015, and about 90 in 2014.
However, the bank reported 689 unsuccessful internal fraud attempts in 2019, compared to 319 in 2018. KCB has adopted the Association of Certified Fraud Examiners' definition of fraud, which includes activities involving dishonesty and deception that can drain value from a business.
It's worth noting that KCB was among five banks fined by the Director of Public Prosecutions, Noordin Haji, for failing to report suspicious transactions linked with the theft of funds at the National Youth Service. The bank paid Sh60 million as a fine.
