How a Syndicate Stole Sh500 Million from Safaricom’s Fuliza Service

Safaricom’s Fuliza overdraft service, which allows M-PESA users to complete transactions even with insufficient funds, has become a lifeline for many Kenyans. However, detectives have uncovered a sophisticated fraud scheme where scammers exploited the platform, stealing nearly Sh500 million in a well-coordinated operation.

The Fuliza Fraud Scheme

A high-level syndicate of eight young men based in Nakuru and Trans-Nzoia counties orchestrated the scam. The suspects—Isaack Kipkemoi, Gideon Rono, Maxwell Ributhu, Gideon Kirui, Moses Rono, Collins Kipyegon, Edwin Cheruiyot, and mastermind Peter Gitahi—were arrested in a meticulous operation by detectives.

How the Scam Worked

1. Fraudulent SIM Card Registration – The suspects used fake national ID numbers to register thousands of Safaricom and Airtel SIM cards.
2. Exploiting Fuliza Loans – They activated Fuliza on these lines, borrowed money, and never repaid.
3. Dumping SIM Cards – After maxing out loan limits, the fraudsters would switch off or discard the SIMs, making recovery impossible.
4. Money Laundering via Fake Agent Accounts – Some lines were registered as Safaricom agents, allowing them to transfer stolen funds to personal bank accounts disguised as M-PESA float.

The Investigation

The Banking Fraud Investigations Unit (BFIU) launched a probe in August 2022 after Safaricom noticed an unusual spike in Fuliza loans with zero repayments.

• 123,000 new numbers took Fuliza loans in January 2022 alone, all linked to fraudulent activity.
• Peter Gitahi, the mastermind, allegedly accessed the National Registration Bureau database to generate fake IDs for SIM registration.
• The suspects initially borrowed and repaid small amounts to build credit scores before executing large-scale fraud.

Luxury Living from Stolen Funds

The suspects lived lavishly, owning:

• 2 Subarus
• 1 Toyota Mark X
• 1 Toyota Probox
• 2 motorbikes

During their arrest, detectives recovered:

• 14 Mobicom phones (used for M-PESA registrations)
• 6 laptops & 40+ mobile phones
• 7 routers
• 1,000+ Safaricom registration forms
• 200+ ATM cards from major banks

What’s Next?

The suspects are undergoing interrogation, with plans to arraign them in court soon. This case highlights vulnerabilities in digital lending systems and the need for stricter SIM registration protocols.

How to Protect Yourself from Fuliza Fraud

• Monitor your credit activity regularly.
• Report suspicious transactions immediately.
• Avoid sharing personal details with unknown parties.

This shocking scam serves as a wake-up call for financial institutions and mobile lenders to enhance fraud detection mechanisms.