Fraudster have recently gone on the loose even as authorities have heightened operations to nab criminals in Nairobi and other parts of the country, to prevent cyber crimes, bank thefts and other offences.
A nationwide survey released by the Central Bank of Kenya shows that mobile money agents, who largely consist of M-Pesa agents, had 24,562 cases of counterfeit notes, which is 97 per cent of the fraud cases they face.
Bank agents reported 1,297 cases of fraud out of which 75 per cent involved counterfeit notes.
It has also been revealed that counterfeit bank notes are the most common form of fraud in Kenya, with mobile money and bank agents being the key targets.
The six-month survey conducted in 2015 whose findings were released by the Central Bank of Kenya, captured 27,196 cases of fraud.
The Central Bank has, however, been reporting that the crime is on the decrease due to the lower number of counterfeit notes submitted to it.
The survey indicates that most victims of counterfeit notes do not report the incident and where duped, they may try to pass on the fake note to other unsuspecting persons.
Fraudsters usually operate in slum areas where cash velocity is especially high during market days, mainly Saturdays.
Targeting of mobile money agents and bank agents also points at efforts to exploit low training among the cash dealers in identification of fake notes especially the Ksh200 denomination note and lack of illuminating machines used to identify counterfeits.
Vendors are usually alert when handling large denomination notes — Ksh1000 and Ksh500 – in a bid to mitigate huge losses.
Fraudsters do not fake small notes as it does not make economic sense due to the cost of production and risk involved.
Circulation of fake money is also expected to pick as Kenya nears its general elections because aspirants and their handlers dish out the fake notes as they push to lure the public into considering the candidacy.
Two people were arrested after they were found in possession of Ksh.700,000 fake currency in Embu North Sub County.
Assistant County Commissioner 1 Manyatta Division Fredrick Kimani confirmed the arrest and identified the two as Josephine Mukami Mugo, 25 ,and Mugo Rware.
Forex bureaus reported 121 incidences of fraud of which 74 involved fake notes underlining the prevalence of counterfeit international currencies. Fraudsters hope to exploit low understanding of security features of international currencies.
A total of 25,744 incidences of counterfeit notes were captured in the survey conducted across all financial service providers. Counterfeiting was the most common form of fraud as it was cited in all financial sectors with the exemption of pension industry.