Inside Safaricom’s security nightmare as unsolved M-Pesa fraud, Ksh 400,000 Lost, and lack of accountability under CEO Peter Ndegwa

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Safaricom, Kenya’s leading telecommunications company, has recently faced criticism over its handling of customer security, particularly concerning M-Pesa, its mobile money platform.

A troubling incident involved Festus Kasyoka Mbuva, a resident of Lowell, Massachusetts, who reportedly lost Ksh 400,000 in a single day to individuals named John Kariuki and Beatrice Gaitho.

When Mbuva sought assistance from Safaricom’s customer care, he was met with indifference and was told to “wait for investigations,” a process that could potentially take years without any assurance of resolution or compensation.

This case is not isolated. Numerous Safaricom customers have reported similar experiences where substantial amounts of money vanished from their M-Pesa accounts, only to encounter unhelpful and dismissive responses from the company’s support staff.

The lack of prompt action and transparency in addressing these issues has led to growing frustration among users, who feel vulnerable and unsupported.

Adding to the concern is Safaricom’s influence over mainstream media through its substantial advertising expenditures.

This financial clout raises suspicions that negative stories about the company, especially those involving customer grievances and security breaches, are deliberately underreported or ignored.

Consequently, affected customers find themselves turning to social media platforms to voice their complaints, seeking justice and accountability in the public domain.

The implications of these security lapses are profound.

Customers rely on M-Pesa for various financial transactions, including paying school fees, purchasing goods, and investing in property.

The realization that their hard-earned money can disappear overnight, coupled with the company’s apparent apathy, erodes trust in Safaricom’s services.

This erosion of trust is further exacerbated by reports of internal fraud; in the year ending March 2023, Safaricom dismissed 33 employees for fraud-related offenses, including SIM-swap cases and breaches of policy.

While Safaricom has implemented measures to combat fraud, such as distributing pre-programmed smartphones to agents for customer registration and linking them to the Registrar of Persons’ database, these efforts seem insufficient.

The persistence of fraud cases suggests that the company’s systems are still vulnerable, and its customer service approach remains inadequate in addressing and resolving issues promptly.

The situation calls for Safaricom to reevaluate its customer service protocols and security measures.

There is an urgent need for the company to enhance its responsiveness to customer complaints, ensure transparency in its operations, and implement robust security systems that can detect and prevent fraudulent activities swiftly.

Moreover, fostering an organizational culture that prioritizes customer satisfaction and protection is essential in restoring and maintaining public trust.

Safaricom’s current approach to handling customer security concerns and fraud cases is inadequate and damaging to its reputation.

The company’s perceived arrogance and lack of accountability not only harm its customers but also threaten its standing as a trusted telecommunications provider.

Immediate and comprehensive reforms are necessary to address these challenges and rebuild confidence among its user base.

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