Baloobhai Patel linked-Absa Kenya recovers $1.8 million lost to fraud

Key Points

• Absa Bank recovers $1.8 million lost to fraud in 2024, a sevenfold rise as AI tools and system upgrades bolster cybersecurity efforts. 
• Kenya flagged among top 10 globally for digital fraud risk, with phishing attacks surging amid rising mobile money usage and low digital literacy. 
• Investor Baloobhai Patel ups strategic stake in Absa, now holding over 65 million shares, backing its long-term digital and real estate expansion.

Absa Bank Kenya, a leading Nairobi-based lender partly owned by Kenyan investor Baloobhai Patel, recovered Ksh227 million ($1.76 million) in 2024 that had previously been lost to fraud, a sevenfold jump from Ksh32 million ($0.25 million) in the prior year, as the bank scaled up its cybersecurity investments and fraud detection systems. 

In its latest annual report, the Nairobi-listed lender said its systems helped avert an additional Ksh334 million ($2.59 million) in potential losses. However, it still booked a net fraud loss of Ksh58 million ($0.45 million), slightly higher than the Ksh49 million ($0.38 million) recorded the year before.

AI tools, system upgrades drive fraud detection efforts

As fraudsters increasingly exploit social engineering and digital banking platforms, Absa said it’s responding by deploying artificial intelligence tools to proactively assess threats across its operations. The bank also upgraded its internal fraud monitoring systems in 2024 to improve data analytics and reduce false positives that delay legitimate transactions. 

“We’ve seen a rise in fraud attempts, especially those targeting customers via social engineering,” Absa noted. “To combat this, we’re not only strengthening our technology but also educating customers to recognize and avoid scams.” The lender has also increased hiring of AI engineers and tech-focused talent to sharpen its resilience in a fast-evolving threat landscape.

Digital literacy gap and mobile money uptake fuel risk

Absa flagged Kenya’s growing mobile money usage and varying levels of digital literacy as risk factors. “Fraudsters continue to evolve, and with rapid digital adoption, the general public remains vulnerable,” the report noted. 

A 2024 study by TransUnion ranked Kenya among the top ten countries globally for suspected digital fraud exposure, with 80 percent of consumers reportedly targeted by phishing attempts via SMS, calls, and emails.

Investor spotlight: Baloobhai Patel’s strategic bet on Absa

Absa Kenya, a subsidiary of South Africa’s Absa Group, operates 86 branches nationwide. Patel, one of Kenya’s wealthiest investors, owns a 1.2 percent stake worth over 65 million shares, highlighting his confidence in the lender’s long-term trajectory. 

In a separate move to diversify its impact, Absa committed Ksh6.7 billion ($52 million) to develop 10 student housing projects in Nairobi, in a move to address the capital’s 300,000-bed student accommodation deficit.