Court Rules DTB, Safaricom Liable in Sh4.4 Million SIM-Swap Fraud Case
A Kenyan court has ruled that DTB and Safaricom are jointly liable for a Sh4.4 million loss caused by SIM-swap fraud, citing failures in their duty to protect the client.
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A Kenyan court has ruled that Diamond Trust Bank (DTB) and Safaricom are jointly liable for a Sh4.4 million loss suffered by a client due to SIM-swap fraud, finding both institutions failed in their duty to protect the customer.
The court determined that DTB did not adequately verify transactions linked to the compromised account, allowing unauthorized withdrawals to proceed. According to the ruling, the bank’s internal controls were insufficient to detect or prevent fraudulent activity once the client’s phone number was ported.
Safaricom was found to have failed in its responsibility during the SIM-swap process. The court noted that the telecom provider transferred the client’s number without sufficient authentication, enabling the fraudster to intercept banking alerts and two-factor authentication codes.
The decision, reported by Business Daily Africa and Nairobi News, underscores the shared responsibility of financial and telecommunications institutions in safeguarding customer assets. The court emphasized that both companies neglected established protocols, creating conditions that allowed the fraud to succeed.
No further details on appeal or compensation disbursement were provided in the source material. The ruling sets a precedent for accountability in digital fraud cases involving multiple service providers.