In a swift and decisive move, detectives from the Directorate of Criminal Investigation’s Banking Fraud Investigation Unit (BFIU) have arrested 19 suspects in connection with a massive debit card fraud that led to Equity Bank losing Sh290 million. The suspects are being held for questioning ahead of their planned arraignment and recovery of the stolen funds.
The fraud involved theft by 551 Equity Bank account holders who received the funds after card fraud transactions done between April 9 and 15, 2024. The bank’s risk department discovered an upsurge of transactions emanating from the banks Incoming MasterCard GL, with Sh179.6 million paid out from the GL fraudulently to the 551 Equity Bank accounts.
Additionally, Sh63 million was sent to Safaricom Mpesa and Sh39 million to 11 commercial banks. The police and the bank are working with Safaricom and the respective banks to assist in tracing the movement and safeguarding the funds even as the suspects are being sought.
Equity Bank has been proactive in preventing fraud, warning customers about unauthorized text messages asking for confirmation of purchases and emphasizing that they will never call and ask for sensitive information such as online banking credentials, debit card information, or full social security numbers.
This incident highlights the importance of vigilance against fraud and the need for banks and law enforcement to work together to protect consumers and their financial information. The BFIU and Equity Bank are to be commended for their swift action in apprehending the suspects and working to recover the stolen funds.
The crackdown on debit card fraud is ongoing, and officials and witnesses say that more arrests are expected. The public is urged to remain vigilant and report any suspicious activity to their bank or law enforcement.
Caleb Orem, the face behind Ruthless Focus, a prominent figure in the car industry known for his Youtube channel dedicated to car reviews and importation advice, is now under intense scrutiny due to serious allegations of scam surrounding his car importation business. The once-thriving career of Caleb Orem has taken a dark turn as accusations of fraudulent practices have surfaced, casting a shadow over his reputation in the industry.
Concerns have been raised regarding the transparency and legitimacy of the car importation operations conducted by Ruthless Focus. Customers who engaged in business with the company have come forward with claims of undisclosed fees, delayed deliveries, and discrepancies in the quality of vehicles received compared to what was promised.
Caleb Orem Reviews a recent Custom Mazda CX5. Courtesy/X-RuthlessFocus
Additionally, a tweet by user @brokensuit44 has shed more light on the situation, accusing Ruthless Focus of unethical practices. The tweet highlighted a specific incident at the port of Mombasa where a unit shipped by Ruthless Focus was left without proper documentation due to outstanding costs, leading to dissatisfaction among both suppliers and customers. The tweet further criticized Ruthless Focus for alleged dishonesty and mismanagement, painting a grim picture of the company’s operations.
Furthermore, @brokensuit44’s tweet suggested that Ruthless Focus may have been involved in running a Ponzi scheme, questioning the pricing strategy of the company. The tweet pointed out discrepancies in the cost of a unit listed in Japan compared to the duty and additional charges in Kenya, raising concerns about the profitability and pricing practices of Ruthless Focus.
Dude really was running a ponzi ma gai.
This unit is listed in Japan at about 3.7 KES (ata sio cost to Msa) and duty sits at 2.6m and not counting port charges etc
As investigations continue and public scrutiny persists, the future of Caleb Orem’s car importation business hangs in the balance, with the once-admired figure now facing a wave of skepticism and distrust from both customers and industry peers. The decision of Ruthless Focus to remain silent in the face of serious allegations has only deepened the controversy and cast a shadow of doubt over the integrity of the business.
The industry watches closely as authorities delve deeper into the allegations, awaiting clarity on the situation and the potential repercussions for Ruthless Focus and Caleb Orem. The unfolding saga serves as a cautionary tale in the competitive world of car importation, highlighting the importance of transparency, accountability, and ethical business practices in maintaining trust and credibility within the industry.
Onto some rather shocking development, 23-year-old Victor Kibet, a recent graduate from Jomo Kenyatta University of Agriculture and Technology (JKUAT), has been thrust into the spotlight following his mysterious abduction while enjoying a game of pool at a popular spot along Thika Road. What initially seemed like an isolated incident soon unraveled into a tale of intrigue, exposing a tangled network of international fraud.
Kibet, who graduated from JKUAT just last year, had eschewed traditional employment in favor of pursuing a career as a Forex trader. However, his sudden and unexplained accumulation of vast wealth raised eyebrows among those acquainted with him, prompting scrutiny into his connections and the source of his affluence.
Victor Kibet was fond of showing off his wealth despite scrutiny of its source. Image/Courtesy
The abduction, orchestrated by individuals posing as law enforcement officers in Juja, Thika, marked the commencement of a series of revelations that implicated Kibet in a sophisticated fraud ring with ties to Chinese hackers and fraudsters.
The allegations posted on Twitter exposing the connection of Kibet and Chinese International Fraudsters. Image/Courtesy
At the heart of this clandestine group’s operations lay the practice of carding, a dark web activity involving the illicit acquisition of foreign cards to exploit vulnerabilities and siphon funds from bank accounts. Employing intricate schemes such as fabricating invoices or leveraging legitimate platforms like Airbnb for money laundering, Kibet and his cohorts operated covertly, leaving a trail of financial devastation in their wake.
NEWS UPDATE
Victor bett, was playing pool in Juja, Thika, on Monday, 18th March. He was abducted that afternoon by people claiming to be police. The recent JKUAT graduate, Victor Kibet, was a millionaire at 23
With the emergence of details concerning Kibet’s Chinese associates and the opulent lifestyle he had adopted, complete with luxury vehicles including a Toyota Mark X, Audi Q5, Mercedes Benz GLC 250, and Subaru Forester, suspicions surrounding the legitimacy of his wealth intensified. Despite his father’s staunch defense of his son’s character, the glaring incongruity between Kibet’s modest background and extravagant living standards cast doubt upon the veracity of his riches.
Prior to his disappearance, Kibet had attracted the attention of detectives from the Directorate of Criminal Investigations (DCI), who were closely monitoring his activities. His sudden vanishing act has ignited a sweeping investigation spanning Thika, Kiambu, and Nairobi counties, as law enforcement agencies devote their resources to unraveling the enigma surrounding his abduction and alleged involvement in fraudulent enterprises.
The saga of Victor Kibet serves as a cautionary narrative, illuminating the perils inherent in the realm of cyber fraud and the profound repercussions it can inflict upon individuals and their families. As authorities delve deeper into the intricate web of deceit and deception, Kibet’s story stands as a stark admonition against the temptations of engaging in illicit pursuits in the pursuit of wealth and influence.
In a striking turn of events, a high-profile fraud case targeting a group accused of orchestrating a SIM swap scam has been dismissed.
The case’s foundation rested on the prosecution’s ability to secure vital registration documents and transaction records from telecommunications giants Safaricom Plc and Airtel. These documents were critical to proving the involvement of the accused in the illicit mobile money transfer scheme.
Despite the court’s clear directive to obtain this information within a two-week timeframe, the prosecution encountered insurmountable delays.
The telecom companies’ failure to provide the requested data in time led to the inability to move forward with the case, resulting in its dismissal.
The defendants, Titus Chepkwony, Marcus Kipkirui Langat, Brian Kipkirui Cheruiyot, Aaron Kimutai Bett, and a minor, were initially charged on December 18, 2023. Their alleged involvement in the SIM swapping racket, a scheme that has plagued mobile phone users, put them at the center of a legal storm.
A police raid on the suspects’ hideout yielded a trove of evidence, including multiple SIM cards and national identity cards, along with notebooks filled with detailed personal and financial information.
These notebooks contained data on Mpesa balances, Fuliza limits, and Kenya Commercial Bank (KCB) Mpesa loan limits, painting a picture of a sophisticated operation.
State counsel Clara Boyon faced the court, expressing the prosecution’s predicament. The absence of cooperation from Safaricom and Airtel left the investigation incomplete, with no clear indication of when the necessary information would become available. In light of this, she requested the release of the suspects and the closure of the miscellaneous file, a plea that the court granted.
Defense advocate Caren Koskei highlighted the irregularities in the suspects’ detention, including their arrest without a court warrant and the prolonged duration of the investigation before formal charges were made. The court’s decision to release the suspects underscored the defense’s argument, with the adult suspects being held at Chebunyo police station and the minor released into parental care.
This case’s collapse serves as a cautionary tale about the complexities of prosecuting digital fraud, especially when reliant on the cooperation of large telecom providers.
It raises questions about the efficiency of legal processes and the accountability of corporations in aiding law enforcement efforts to combat cybercrime.
In August 2022, an online drama unfolded that left many intrigued and concerned. The central figure in this unfolding narrative was Catherine Njoki, who went by the Facebook alias ‘Kate wa Gladys.’
At the center of all the hullabaloo was an unexpected serious case of financial fraud, The scam allegedly involved Kate wa Gladys creating small WhatsApp groups commonly known as “chamas“, main purpose of the chamas was to pool funds from its members. Over time, these groups swelled in size, amassing Upto Ksh 10 million. The money was then lent to members to reinvest in their various personal projects.
A screenshot of one of Kate Wa Glady’s WhatsApp Chama. Photo/Facebook.
The plot thickened when some members started protesting that they couldn’t access the funds and Kate was suddenly arrested on fraud charges related to the issue. Before her arrest, she boasted nearly 80,000 followers on her Facebook page, but she couldn’t provide a reasonable account of the staggering 10 million shillings that members had contributed to her various online chamas.
Kate’s defense majorly banked on claims that some members had defaulted on payments, running into millions of shillings. She went to her Facebook page and promised the disgruntled members that she was diligently working to ensure they received what was owed to them. This fell on deaf ears as members couldn’t understand how they couldn’t access their funds.
A screenshot of an alleged success story of the whatsapp chamas run by Kate wa Gladys. Photo/Facebook.
Kate even went to the extent of publicly naming a woman who, she alleged, had failed to repay Sh2,859,850 across 19 different chamas. Her last Facebook post before her arrest was made on August 20th, where she assured her followers that she hadn’t deleted her page and was still present on the platform.
After a long period of online silence, Kate made a comeback yesterday on social media with two heartfelt Facebook posts. Her first message conveyed a message of resilience, stating, “God’s grace is sufficient. Starting from scratch all over again. Beauty of rock bottom is that there is nowhere to go but up.”
In her second post, she took a more apologetic tone, addressing the pain and losses that many had experienced due to her actions. She sincerely expressed remorse and pledged to put in every effort to restore those who had suffered losses. She also encouraged those who had contributed to the situation to come forward and take responsibility for their part in making amends.
However, the response to Kate’s posts was far from forgiving. Instead, her comments section was flooded with insults, laughter, anger, and mockery from Facebook users. Some, being former members of the chamas, were still reeling from the financial losses they had suffered, and others outrightly expressed their frustration on the comments section.
Some of the insults and mockery on her Comments section. Photo/Facebook.
Today, Kate embarked on starting an online Cake Business. This further led to a barrage of insults and mockery as the scam is still fresh in everyone’s mind.
The story of Kate wa Gladys serves as a stark reminder of the dangers of online financial schemes and the enduring impact of such actions on individuals’ lives and online reputations.
For a more in-depth examination of this story, please refer to your trusted news sources or contact Smartie News for a comprehensive article.
In a shocking case of multi-generational cybercrime, the University of Nairobi bore witness to the transformation of a seemingly quiet and studious student, Jeffrey Ndungi Sila, into a flamboyant fraudster who purchased two planes and lived a lavish lifestyle. The story of this family’s criminal enterprise is one that unravels the depths of cybercrime intricacies.
Ndungi, once an unassuming engineering student at the University of Nairobi, made a startling transformation shortly after his cousins, Loretta Wavinya and Lillian Nzongi, were convicted for defrauding the American government of Sh975 million. Their imprisonment did not deter Ndungi; instead, it served as an opportunity for him to embark on a life of crime.
Photo/Courtesy
Graduating in 2012, just two years after beginning his studies, Ndungi had already purchased two Cessna planes, bearing registration numbers 5Y-CCN and 5Y-CCO. With no known source of income, his lavish lifestyle raised eyebrows among his peers.
It is believed that Ndungi’s journey into cybercrime may have been influenced by his uncle, Paul Kilungya Nyumu, who introduced the family to cybercrime before vanishing. Nyumu played a significant role in laundering funds stolen by his nieces, Wavinya and Nzongi.
Ndungi soon joined the world of cybercrime, engaging in fraudulent activities across Kenya, Nigeria, North Africa, and the United States. He began by hacking into Multichoice systems, profiting from the illegal distribution of DSTV signals. Subsequently, he participated in a scheme that involved stealing the identities of American citizens to claim fake tax refunds.
However, his uncle Robert Mutua Muli, based in Virginia, USA, explored a different avenue known as Business Email Compromise (BEC). The BEC scheme involved hacking into company emails to identify clients and convince them to redirect payments to fraudulent accounts.
While Ndungi was the head of a DSTV hacking cartel in Kenya, his uncle Muli, an integral figure in the BEC scheme, took instructions from individuals in Kenya, including a key architect of the scam known as “Frank MA,” who was based in Nairobi. Frank had connections in the banking system to facilitate the flow of stolen funds from the US to Kenya.
The family’s criminal enterprise relied on laundering funds through various accounts and individuals, including Muli’s wife, Beth Nyambura Gitau, and other accomplices like Francis Asanyo Mobisa, Anthony Mureithi, and Rachel Mathenge. The investigations revealed the utilization of a Malindi-based IP address for the fraud, suggesting that Frank may have been in Malindi during the operation.
Ndungi’s downfall came in 2014 when he attempted to claim a fraudulent tax refund using the identity of an American citizen. The US Internal Revenue Service uncovered the scheme, leading to an undercover operation that led to Ndungi’s arrest in 2016. He was caught trying to board a plane to Nairobi from Los Angeles, serving a 10-year jail term.
Muli was also arrested while attempting to escape to Kenya after stealing over Sh200 million in a scheme that tricked American government institutions into wiring payments meant for Dell. He received a five-year sentence.
Photo/Courtesy
The family’s cybercrime activities are believed to have stolen over Sh2 billion in a tax fraud scheme, making it one of the largest cybercrime heists in the industry. The shocking tale of Ndungi and his family’s criminal activities highlights the complex and intricate nature of modern cybercrime.
Story was compiled from various online sources and from Jack Zollo
In Kenya today, We are often taught not to trust anything/anyone online. This was the case in 2021/2022 when a notorious pyramid scheme resurfaced with a vengeance. They had evolved, becoming more sophisticated, elusive, and impervious to regulation. These schemes had lurked in the internet, ensnaring thousands of unsuspecting, young Kenyans with the allure of easy money. The name was Public Likes.
These scam had promised quick riches, but just like all pyramids, they had inevitably crumbled, leaving countless victims in financial ruin. It had posed as a website where users could earn money by merely clicking on ‘adverts.’
Public Likes had attracted new investors with promises of unusually high short-term returns. However, these returns hadn’t been from legitimate business activities. The website had presented itself as a “social media marketing” platform, claiming to connect advertisers with potential customers.
Users on this site had earned money simply by clicking on ads, in a scheme referred to as Paid-to-Click (PTC). They had been led to believe that advertisers had paid them for every click, known as Pay per Click (PPC). It had been a clever deception.
Photo/Courtesy
Public Likes hadn’t just been a Ponzi scheme; it had been part of a complex online fraud that had cost advertisers nearly Ksh 2 trillion annually in lost advertising revenue.
Jane had been among the earliest investors in this scheme, which had attracted approximately 2 million users in less than three months at its peak. Public Likes had even outperformed well-known websites like Twitter, Standard Digital, Wikipedia, and Sportspesa.com in popularity, according to Alexa, a California-based company that had tracked web traffic data.
Jane had had around Ksh 60,000 invested in the company when Safaricom had decided to suspend Public Likes’ Paybill. This move had come in response to numerous complaints from users who hadn’t been receiving their payments.
The company had insisted it hadn’t closed down, only temporarily pausing transactions while they had made changes. Meanwhile, Jane and others who had already recouped their investments had shrugged it off.
Latecomers like Peter, who had been attracted by the Ksh 20,000 Jane had been withdrawing weekly, had been left in suspense. If Public Likes had gone down, it had taken Peter’s hard-earned Ksh 4,500 with it. Both Jane and Peter had invested Ksh 4,500 to move past the first level, where users had had to wait three months and click on five ‘adverts’ every day to earn Ksh 10 for each click. Most people had quickly upgraded to the Business Basic level, where a one-time Ksh 4,500 subscription had allowed them to earn Ksh 7,500 per month.
Muniu Thoithi, head of forensics at PriceWaterhouseCoopers (PwC), had found this arrangement intriguing. He had stated that it had been peculiar for users to pay the PTC site to click on ads when they should have been paid for clicking on the links.
The Premium account subscription fee had been Ksh 14,000, allowing users to watch a maximum of 50 ads and earn Ksh 15,000 per month. At the highest level, Gold, users had paid a Ksh 90,000 subscription fee and had earned Ksh 30,000 monthly.
Despite knowing it had been a pyramid scheme, Jane had recouped her investments, while Peter had been left in limbo. The pyramid scheme had operated by receiving payments from new entrants like Peter and redistributing them to early users at the top, such as Jane.
When Peter had examined the list of advertisers on the website, he had noticed that most of them had been other PTC websites, which had raised questions about why these sites had paid for clicks. This had suggested that there had been little, if any, earnings from real advertisers.
Public Likes had started with genuine products, especially hotels, but they had mostly been international establishments. The hotels may have been duped into paying for viewers who hadn’t converted into customers, affecting Public Likes’ revenue.
According to Thoithi, PTC sites had struggled to attract advertisers willing to pay for clicks from users genuinely interested in the ads. Some PTC sites had even acted as affiliates to other PTC sites, redirecting clicks to the primary PTC site.
Peter had refrained from withdrawing his money, hoping it would accumulate, but the suspension of the Paybill number had dashed those hopes. Now, Public Likes had been tempting users like Peter with new earning options such as offer walls, videos, and a daily jackpot.
Public Likes had also insisted it hadn’t shut down its Paybill, temporarily suspending transactions to streamline operations. Safaricom had confirmed that they had met with the company’s representatives but couldn’t reveal their identities.
Public Likes might have also been linked to a global scam known as click fraud, which had robbed advertisers of about Ksh 1.7 trillion annually, according to ad verification company Adloox. Click fraud had involved repeatedly clicking on ads to generate revenue for the host site or drain revenue from advertisers.
In this type of fraud, a PTC site like Public Likes had been known as a click farm, where low-paid workers had been hired to click on paid advertising links.
While this online deception had continued to grow, fueled by high unemployment rates, increasing internet penetration, and a burgeoning mobile economy in Africa, it had been crucial for individuals to exercise caution. Falling victim to pyramid schemes had often reflected a lack of proper research, even when information had been readily available.
Despite numerous pyramid schemes collapsing and causing significant financial losses, people had continued to be lured into such ventures. The allure of quick and easy money had led individuals down a path of financial devastation, and this cycle had appeared far from ending.
As the Public Likes scheme had unraveled, another PTC, “Synergy Traffic,” had emerged, offering more attractive terms. Users had been able to withdraw a minimum of Ksh 2,500, and there had been no limits on daily clicks. Unlike Public Likes, Synergy Traffic had used Bitcoin for payments, making transactions difficult to trace.
While some like Jane may have considered joining another pyramid scheme, it had been essential to recognize the risks and pitfalls associated.
As we are all evolving to an internet- dependent Society, beware of online scams. They can ruin your life.
