Safaricom, Kenya’s leading telecommunications company, has reported a significant increase in employee fraud cases in the year ending March 2023. The annual report highlights that 33 employees were dismissed for fraud-related offenses, marking a 37.5 percent rise compared to the previous year. The telco acknowledges the growing incidents and sophistication of fraudsters, necessitating the implementation of proactive measures to address these challenges.
Growing Incidents of Fraud
According to Safaricom’s annual report, the telco observed a surge in fraud attempts, with a particular focus on SIM-swap services. Fraudsters engage in SIM swapping by impersonating individuals, reporting a lost card, and convincing mobile operators to issue a replacement. This tactic grants criminals access to personal contacts, banking details, emails, and social accounts, enabling unauthorized activities.
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Safaricom has taken several steps to combat fraud and protect its customers. The telco has implemented proactive monitoring and digitizing solutions to mitigate SIM-swap fraud attempts. By closely monitoring activities and embracing digital solutions, Safaricom aims to detect and prevent fraudulent incidents promptly.
Whistle-blowing Policy and Customer Awareness
To further strengthen its fraud prevention efforts, Safaricom has established a whistle-blowing policy that encourages anonymous reporting of fraudulent behavior. Through an ethics hotline managed by an independent and accredited external institution, individuals can report unethical or fraudulent activities without fear of retaliation. Additionally, Safaricom conducts periodic customer awareness campaigns to educate its users about potential fraud risks and preventive measures.
Enhanced Security Measures
In March, Safaricom introduced an “ATM Vicinity Check” technology to combat banking fraud. This solution guarantees that cash withdrawals are possible only when the customer is physically present near the ATM machine. By offering this technology to commercial banks at no cost, Safaricom aims to minimize incidents where criminals exploit victims’ cards or information to withdraw funds from ATMs.
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The Telco remains dedicated to combating fraud and protecting its customers’ interests. The company recognizes the challenges posed by evolving fraud techniques and is committed to investing in robust security measures, employee training, and technology upgrades to stay one step ahead of fraudsters.
Conclusion
Safaricom’s proactive approach in addressing employee fraud and protecting its customers reflects the telco’s commitment to maintaining a secure telecommunications ecosystem. Through measures such as proactive monitoring, digitizing solutions, whistle-blowing policies, customer awareness campaigns, and enhanced security technologies, Safaricom aims to safeguard its users’ funds and personal information. By staying vigilant and continuously strengthening their anti-fraud efforts, Safaricom strives to create a secure environment for its customers to engage in digital transactions and enjoy the benefits of their services.
