Sadly, mobile money scams are a significant problem in Kenya. Here’s a breakdown of the most common scams, how to protect yourself, and what to do if you fall victim:
Protecting yourself from mobile money scams
- Never share your PIN or password: Your mobile money PIN is highly sensitive. Never share it with anyone, even if they claim to be from your mobile money provider or bank.
- Verify the sender: Always double-check the number or identity of the person requesting money. If you don’t recognize it, or the story sounds suspicious, hang up or ignore the message.
- Be skeptical of unsolicited offers: If something sounds too good to be true, it likely is. Never send money to claim winnings or prizes.
- Contact official authorities: If you suspect an emergency scenario may be fake, contact the person in need directly (through other known contact methods) or the relevant authorities for verification.
- Beware of online deals: Research sellers carefully before making online purchases. Use trusted platforms with buyer protection or pay on delivery where possible.
- Report suspicious activity: Report any suspicious calls, texts, or online activity to your mobile money provider immediately.
SIM Lock: Use the SIM lock feature to require a PIN when the phone is powered on or the SIM card is inserted into a new device. This will protect your identity in the case of SIM-swap scams.
Common mobile money scams in Kenya
- SIM swap fraud: This sophisticated scam involves stealing your mobile phone number. Scammers can impersonate you and access your mobile accounts by manipulating customer care agents.
- Fake promotions and prizes: Scammers pretend to be representatives of mobile money services like M-Pesa, claiming you’ve won a prize. They’ll ask you to send money to pay taxes or processing fees to claim your prize (which never exists).
- Hoax SMS and calls: You might receive texts or calls claiming to be from your mobile service provider, bank, or other reputable organizations. They’ll tell you there’s a problem with your account and ask for PIN numbers or other information, or instruct you to send a small sum to a given bank account.
- False emergencies: Scammers prey on sympathy by posing as relatives, friends, or people in authority. They’ll fabricate emergency situations (accidents, hospital bills, etc.) and urgently request money.
- Romance scams: Scammers build online relationships, gain your trust, and then start requesting money for various reasons.
- Online market scams: Fraudsters advertise appealing deals on goods for sale, often requesting you to send a deposit via mobile money, but the products never arrive.
- USSD Scam Tactics: Fraudsters may also send out unsolicited USSD requests in an attempt to prompt you to input sensitive information like your PIN. They rely on the probability that you might not be cautious every time, especially if the message seems urgent or official.
- Phishing Attempts: Another common trick is phishing, where you’re sent messages that appear legitimate but are designed to extract your personal information. This may involve fraudsters posing as financial institutions to trick you into disclosing your PIN or personal details.
How scammers execute mobile money fraud
Scammers are innovating new ways to access your funds and personal details, often using sophisticated social engineering tactics.
SIM Swap fraud
Here scammers gain access to your phone number and consequently your mobile money account by fraudulently swapping your SIM card.
With control over your phone number, they can easily breach your financial accounts.
What to do if you are a victim
- Contact your mobile money provider: Report the scam immediately to your provider. They may be able to block the fraudster’s account or help retrieve lost funds.
- Report to authorities: Report the scam to the police or the Directorate of Criminal Investigations (DCI) in Kenya. This helps track down criminals and prevent future scams.
- Change PINs and Passwords: If you suspect your information has been compromised, immediately change your mobile money PIN and passwords on other linked accounts (like banking apps).
- Suspend your cards: If you use virtual cards that are linked to your compromised mobile money line (e.g. Mpesa Globalpay), suspend them immediately. If you can’t do it on your end, call customer care and request for assistance
Note: Scammers are constantly changing their tactics, so stay vigilant and informed about the latest scams. By being aware and cautious, you can significantly reduce your risk of falling victim.
Reporting Scams and Legal Recourse
When you fall victim to mobile money scams in Kenya, knowing how to report the incident and understanding the legal avenues available are crucial for seeking justice and preventing further fraud.
How and where to report mobile money scams
To effectively report mobile money scams, you have several avenues at your disposal.
If you encounter an M-Pesa scam, immediate steps include contacting Safaricom customer care through numbers such as 100, 200, 234, or directly at +254-722-002-100. You may also send any suspicious SMS to 333 to notify the company of potential fraud.
For a more comprehensive action, reporting to the Directorate of Criminal Investigation (DCI) or the nearest police station is advised.
Also, the Communications Authority plays a critical role in regulating the telecom sector and can be contacted on weekdays at +254703 042 000 or +254 730 172 000, or via email for issues related to cybercrime and online fraud.
Conclusion
Mobile money scams in Kenya have become a significant concern. This is especially true with the widespread adoption of platforms like M-Pesa and Airtel Money.
As you navigate the digital financial space, awareness and vigilance are key to protecting your assets. Scammers continually devise new tactics to deceive users, hence the importance of recognizing the signs of fraudulent activities.
Be critical of unexpected requests for personal information. Also, verify the authenticity of messages claiming to be from your mobile money provider.
Using features such as selfie verification can add an extra layer of security to your transactions. Additionally, financial institutions and regulatory bodies need to educate you to thwart scammers’ attempts.
Remember to report any suspicious activity immediately to the service provider and relevant authorities. This proactive approach not only protects your funds but also contributes to the overall efforts to combat scams in Kenya’s mobile money ecosystem.
Stay informed, stay alert, and prioritize the security of your mobile financial transactions. This ensures that these tools continue to serve their intended purpose of seamless and safe financial accessibility.
