KCB Group has fired 22 employees for fraud-related offences in the year ended December 2023, a 175 percent increase from the eight sacked the previous year.
The lender's latest sustainability report, released on Tuesday, showed that it dealt with 48 fraud-related disciplinary cases, resulting in 22 terminations and 26 resignations.
“Maintaining a flexible workplace safety is paramount, and our disciplinary processes are designed to be fair and effective in deterring fraudulent activities. In 2023, we handled 48 disciplinary cases related to fraud, resulting in 22 terminations and 26 resignations. We also conducted targeted training to address process lapses and enhance control environments,” KCB said.
The bank said it blocked 249 fraud attempts on its system in the year ended December 2023, which would have wiped out Sh362.7 million. This was a significant jump from a similar period the previous year, when KCB recorded 113 fraud incidents on its banking system worth Sh137.5 million, according to a new report.
The bank said it will use artificial intelligence (AI) and machine learning models as part of a broader strategy to curb fraud on its banking platform.
“We have invested in digital technology that has enabled us to guarantee the integrity of our systems and aided the Group in increasing the efficiency with which we serve our customers. All staff decisions can be monitored, which leads to greater accountability and transparency in the Group’s operations, but also effectively blocks any fraudulent activities,” KCB said in its sustainability report.
“The planned implementation of a new mobile banking platform, leveraging AI and machine learning models, aims to enhance customer security and combat fraudulent activities. The integration of multiple services via mini apps within the super-app demonstrates our commitment to providing a comprehensive and secure digital banking experience.”
Kenya's highly digitised economy, linked to mobile money through telcos and banks, has made the country a target for cybercrime and online fraudsters, with lenders losing hundreds of millions of shillings annually.
Just last week, media reports revealed how Equity Bank was robbed of Sh1.5 billion in a suspected internal fraud by an employee, putting pressure on banks to tighten their security systems.
In the Equity case, money meant for employees' salaries was allegedly transferred to several accounts by the lender's manager at the Group Processing Centre, Salary Processing Unit.
“Banks have deployed AI solutions to monitor electronic communications by staff in the trading room to detect outliers and irregularities,” the sector regulator said.
The new use of AI is a general shift from previous years, when the use of technology in the banking industry was linked to customer support and predicting volatile market trends and outcomes.
