Revealed: How 8 Suspects Defrauded Ksh.500 Million From Fuliza

In a staggering and shocking discovery, the crack detectives of the Directorate of Criminal Investigations (DCI) have apprehended a group of 8 individuals, who are suspected of being part of a well-orchestrated fraud ring that allegedly swindled over Ksh.500 million from Safaricom's overdraft service, Fuliza. The suspects, whose ages range from 24 to 30, have been accused of committing these crimes on multiple occasions between 2022 and 2023.

Isaack Kipkemoi, Gideon Rono, Maxwell Ributhu, Gideon Kirui, Moses Rono, Collins Kipyegon and Edwin Cheruiyot were all taken into custody in Kiamunyi, Nakuru County after a tip-off, while the supposed ringleader of the group, Peter Gitahi, was arrested by the DCI in Kitale, Trans-Nzoia County.

The modus operandi of the fraudsters involved using false identity card numbers to register SIM cards and avail loans from the overdraft facility before reneging on their repayments. The suspects were found to be in possession of a significant number of Safaricom and Airtel SIM cards.

The DCI was alerted to this sinister operation in August 2022, when the management of Fuliza detected an unprecedented spike in loan uptakes, which far exceeded their performance scale and the borrowers were not honoring their repayment obligations. According to the Banking Fraud Investigations Unit (BFIU), over 123,000 new mobile numbers opted into Fuliza in January 2022 and availed loans, but the SIM cards were later either fraudulently abandoned or switched off, making it impossible to reach the borrowers.

Further investigation revealed that Peter Gitahi had access to the National Registration Bureau database, which he used to generate false identity numbers for SIM card registration. He then sold the fraudulent SIM cards to his accomplices for a profit. The syndicate also registered some of the lines as Safaricom agents and deposited the borrowed funds into personal bank accounts, disguised as MPESA float. The cunning fraudsters initially repaid the loans, thereby improving their credit scores, until the SIM cards reached their limits and the final loan was taken before disposing of the SIM cards.

The DCI reported that one identity card was used to register 5 lines in the daring SIM scam perpetuated by the young men. As a result of the scheme, the suspects were able to acquire 2 brand-new Subarus, a Toyota Mark X, a Toyota Probox, and 2 motorbikes, which have since been impounded. The police also recovered 14 mobicom phones used in registering MPESA user SIM cards, 6 laptops, over 40 mobile phones, 7 routers, assorted Safaricom lines, over 1000 Safaricom subscribers' registration forms, over 200 ATM cards from all major banks, car agreements, and other exhibits.

The suspects are currently being interrogated by the DCI, pending their arraignment.