The card operations team at Ecobank Kenya faced significant challenges leading to potential fraud between 2020 and 2022, resulting in substantial financial losses. An internal report highlighted critical deficiencies in oversight and technology, allowing employees and merchants to exploit the system. The bank encountered various issues such as erroneous transactions, rejected payments, and unaccounted balances, totaling millions of dollars.
The investigation revealed irregularities in the operation of merchant acquiring products, with unprocedural entries and lack of documented procedures. Control gaps, inadequate training, and weak internal processes further exacerbated the situation, leaving the bank vulnerable to fraud.
Despite efforts to address the issues, discrepancies in transaction processing, duplicate entries, and delays in uploading source documents complicated the reconciliation process. The bank struggled with unexplained balances, unauthorized transactions, and insufficient chargeback monitoring.
Ecobank Kenya’s failure to respond to comments raised concerns about its transparency and accountability in addressing the reported issues. The bank must strengthen its internal controls, enhance employee training, and improve oversight to prevent future financial losses and safeguard against fraudulent activities.