Safaricom cracks down on subscribers in airtime fraud

Corporate News

Thousands of Safaricom subscribers are under police radar for their involvement in a multi-million-shilling airtime time theft that took place last month. PHOTO | BD GRAPHIC 

By OKUTTAH MARK, mokuttah@ke.nationmedia.com

In Summary

• Suspect charged with breaking into the Safaricom's computers and stealing an undisclosed amount of airtime credit.
• About 10,000 Safaricom subscribers who bought the stolen airtime at half price face a charge of handling stolen property.

Thousands of Safaricom subscribers are under police radar for their involvement in a multi-million-shilling airtime theft that took place last month
.

One of the suspects was on Tuesday charged in court with manipulating the telecoms firm’s computer system and stealing electronic airtime.

The Directorate of Investigations (CID) is reportedly pursuing the masterminds of the electronic theft and about 10,000 Safaricom subscribers who bought the stolen airtime at half the market price. The subscribers face a charge of handling stolen property.

Alex Mutuku on Tuesday appeared before a magistrate at Nairobi’s Milimani law courts where his case was set for hearing on May 19,2015.

Mr Mutuku is charged with collaborating with others, at an unknown place within Nairobi, to steal airtime valued at Sh20,000 belonging to Safaricom.

The charge sheet says the alleged crime was committed by interfering with the functioning of Safaricom’s computer system with intent to procure the suspect an advantage. 

Bob Collymore, the Safaricom chief executive, declined to comment on the subject insisting that the matter was under investigation.

“Unfortunately, we cannot make specific comments on this query at this time as the case is still under investigation,” Mr Collymore, said.

He said Safaricom continues to invest heavily in technology and security systems to track and identify fraudulent activity on its network given the evolving nature of opportunistic crimes.

“We constantly monitor our business for fraudulent activity and are aggressively dealing with unlawful activity by pursuing prosecution to the fullest extent of the law,” he added.

Mr Collymore was, however, categorical that the incident is not related in any way to Safaricom’s scratch card suppliers who have been able to uphold the same levels of scrutiny in their business as Safaricom has.

Fraud architects

The architects of the fraud are said to have broken into Safaricom’s computer systems and stolen airtime which they sold in the market at half the retail price. Mr Mutuku is, for instance, alleged to have bought airtime worth Sh20,000 for Sh10,000.

The perpetrators of the crime are said to have created a huge market for the stolen airtime by informing friends and relatives where to buy from, causing alarm within Safaricom.

Some of the stolen airtime was traced to friends and relatives of the masterminds, having been sent to them for free. Safaricom has used serial numbers of the stolen airtime to trail their circulation in the marketplace, blocking thousands of consumers found to have handled it.