Kenya has been mentioned in a major financial fraud investigation in the United States after prosecutors accused a network of 14 suspects of targeting more than 3,000 Americans and six major banks in a scheme involving approximately KSh48 billion.
According to the US Department of Justice, the suspects allegedly used stolen identities, forged documents and corrupt banking insiders to access victims’ accounts and carry out unauthorised transactions.
The investigation covers alleged criminal activities between July 2023 and November 2024, with Bank of America among the six financial institutions affected.
How Suspects Allegedly Hacked US Bank Accounts
US prosecutors said the network obtained victims’ personal information and impersonated legitimate account holders to gain access to their bank accounts.
The suspects allegedly used SIM swapping and phone number spoofing to interfere with victims’ phone lines and intercept security codes sent by banks to verify transactions.
Investigators also alleged that the network had contacts inside banking and telecommunications institutions who helped bypass security checks and facilitate unauthorised access.
The operation reportedly involved several attempted fraudulent transactions, including a transfer of approximately KSh258 million to a financial institution in the United Arab Emirates.
Suspected Mastermind Shipped Belongings to Kenya
One of the key developments in the investigation involved the alleged mastermind, who prosecutors said had shipped most of his possessions to Kenya as he prepared to leave the United States.
According to the prosecution, the suspect later travelled with his family to New York, where they planned to board a flight to Malaysia.
Investigators believe he intended to purchase a home in Malaysia.
However, the plan was disrupted when he was arrested at John F. Kennedy International Airport before he could leave the United States.
Kenya Faces Fresh Scrutiny Over US Financial Fraud Cases
The investigation comes amid increased scrutiny of alleged financial fraud schemes in the United States involving networks with links to Kenya.
Recently, US authorities also pursued a separate investigation involving alleged student financial aid fraud.
In that case, suspects were accused of creating fraudulent student accounts using stolen American identities and submitting applications for government-backed education loans and grants.
Some of the proceeds were allegedly transferred to Kenya.
The two investigations have drawn attention to alleged financial crimes involving stolen identities and money transfers across international borders.
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