How a Kenyan bank lost $7.7 million to system upgrades

• A Kenyan slope has mislaid astir $7.7 cardinal owed to strategy glitches during a migration
• During a captious strategy upgrade, customers withdrew $7.7 million, oregon astir N12.9 billion, from October 11 to 31, 2024
• The slope reportedly restricted accounts for customers who overdrew their balances and notified them of the development

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Technical glitches during a captious information migration enabled customers astatine Kenya’s biggest bank, the KCB Group, to retreat sums supra their slope balances.

During a captious strategy upgrade, customers withdrew $7.7 million, oregon astir N12.9 billion, from October 11 to 31, 2024.

KCB loses $7.7 cardinal to strategy upgrades Credit: Bloomberg / Contributor Stock photo: Posed by model
Source: Getty Images

Bank restricts affected slope accounts

The slope reportedly restricted accounts for customers who overdrew their balances and notified them of the development.

According to reports, the slope is besides preparing to usage indebtedness betterment companies to spell aft the customers.

After migrating its database to a determination centre, KCB attempted to integrate its unreality database, starring to a sync error.

The bank’s KCB-M-Pesa people savings accounts, which fto people entree short-term loans and save, were the worst hit, allowing customers to retreat up to 3 times their saved amount.

KCB to usage indebtedness betterment companies

TechCabal reported that the glitches, which lasted 3 weeks, amusement a slope struggling to modernise its IT infrastructure.

According to the report, a high-priority announcement to KCB unit during the situation indicated that employees were sometimes incapable to entree the affected systems, starring to prolonged work interruption oregon full outage.

The slope has yet to remark connected the glitches; however, apical executives discussed addressing the contented astatine a situation gathering and explored betterment options.

The Kenyan fiscal services assemblage is battling a increasing fraud concern, with banks losing astir 130 cardinal annually.

Nigerian banks sack 84 employees owed to fraud

Many Nigerian banks reported successfully migrating their halfway banking systems to caller platforms to unafraid depositors’ funds and boost assurance successful the slope sector.

Meanwhile, a breakdown of the reports connected Fraud and Forgeries successful Nigerian Banks by the Financial Institutions Training Centre (FITC) successful the archetypal fractional of this twelvemonth showed that astatine slightest 105 slope employees were progressive successful fraud.

However, this fig was a 34.38% alteration from the 160 employees progressive successful fraud cases successful 2024.

The magnitude mislaid to fraud cases rises

Despite the diminution successful unit engagement successful fraud, the full magnitude mislaid to fraud cases roseate by 380.13%, up from N12.33 cardinal betwixt January and June 2023 to N59.2 cardinal successful the aforesaid play this year.

The fig of slope employees terminations owed to fraud rose, with 84 employees dismissed in the archetypal fractional of 2024, an summation of 223.08% from the 26 terminations recorded successful the aforesaid play past year.

However, outsider engagement successful fraud cases declined somewhat by 10.78%, with 21,335 cases reported successful the archetypal six months, a diminution from 23,912 successful 2023.

The apical channels for fraud successful banks

Data showed that outsider engagement successful fraud cases stood astatine 92.74% of slope fraud cases betwixt January and June this year.

The fraudsters employed antithetic channels to perpetrate their activities. 

The 3 astir prevalent channels for fraud successful banks were via ATM, web, and fraud involving slope branches.

In the play nether review, fraud via slope branches tops the database with a important borderline involving a full of N55.01 billion, representing 646.4% from N7.37 cardinal mislaid to fraud astatine slope branches successful the aforesaid play successful 2023.

The banks recorded web fraud of N1.87 billion, portion ATM-relation fraud accrued to N43.1 cardinal successful the reappraisal period.

4 Nigerian banks springiness notices of strategy upgrades

Legit.ng earlier reported that commercialized banks’ tech upgrades successful the past fewer weeks person caused terrible lawsuit concerns, panicking slope customers successful agrarian areas.

The concern is acceptable to get worse arsenic much banks denote that they volition beryllium upgrading their technology infrastructure successful the coming weeks.

According to reports, Sterling Bank customers tasted the bitter pill of vexation aft the slope began migrating its systems from T24 to SEABaaS, a new, locally-developed halfway banking application, causing disruptions that lasted for days.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng