Living large, dying young: Carding scam turning varsity students instant millionaires

Carding, modern cybercrime

According to financial experts, carding entails the unauthorised use of credit cards and credit numbers. The architects of the crime are foreigners who rely on a third party to help clean money from the cards and send them back their share.

Going by the words of Denno Bright, carding is a modern-day cyber crime that youths engaged in it fondly refer to as “money traps.”

The money comes easy and its expenditure is also easy. They are the group that are not afraid to portray extravagant lifestyles on social media. In musical concerts, they buy expensive alcoholic drinks and make it rain money as they dish wards of cash to performing artistes and other revellers. 

For his Siaya village mate, Kirinyaga University campus mate and close associate Sospeter Onyango Osunga, popularly known as Billionaire Akoko Sirkali, it was not stories of how he became rich while in university but a bombastic show of opulence and class.

According to the National Crime Research Center (NCRC), a Kenyan crime research bureau, carding refers to unauthorized use of credit cards of another person with a motive of stealing. The stolen credit cards are then used to buy prepaid gift cards to cover up the tracks.

Carding also involves exploitation of personal financial data and money laundering techniques.

The Nairobian can now report that most of the carders or scammers are highly interconnected outside the country and their networks are as far-reaching as the United States, Europe, Asia and even beyond.

Moraa’s (not her real name) story illustrates the growing trend of carding among university students in Nairobi. At first, she had no idea her roommate was involved in scamming until she noticed the large sums of money being transferred to her friend’s mobile phone from the US. What seemed odd was that her roommate would then send the money back through a bank account or international transfer system

Moraa’s suspicions grew when her roommate began listing her as a confidante to help with the transactions. “She used to receive a lot of money on her mobile phone, and when she hit the limit, she would use my phone to receive the cash. I was innocent, and all she would tell me was that it was from a friend who had an investment outside the country,” Moraa recalled.

Receive token

After successful transfers, which typically occurred late at night, Moraa would receive a token of Sh10,000 as appreciation. However, it wasn’t until her father, a school principal, warned her about the dangers of such easy money that Moraa decided to withdraw from the deals. Her roommate later moved to an estate where the so-called friend purchased her a house. Moraa, now distancing herself from the situation, knew her roommate had become one of the wealthiest students on campus.

A cybersecurity expert working with the Directorate of Criminal Investigations (DCI) revealed that international scammers have been actively recruiting young, unemployed Kenyans.

“Every university in Kenya has agents laundering the proceeds of crime,” the expert shared on condition of anonymity. These agents often live lavish lifestyles, but if they deviate from the rules, they are eliminated—sometimes violently, as seen in recent cases.
Sammy (not his real name) also fell victim to the world of money laundering.

Initially enticed by the idea of cryptocurrency trading, Sammy soon found himself involved in laundering money for a co-trader in the United Arab Emirates. He used his Paypal account to receive large sums of money, which he then transferred to an international bank account. In exchange, Sammy received a 20 to 40 percent cut of the money.

Sammy’s involvement in the scam saw him handling up to USD 40,000, but the arrangement ended when his co-trader vanished. Despite the risks, Sammy used part of the money to start a textile business and fleet of transport vehicles, finding a leg

al path to wealth after his brief involvement in the scam. While some youths are recruited to launder “dirty money,” others participate directly in phishing or executing fraudulent transactions. Carding, a growing crime in Kenya, is a prime example.

Julius Momanyi, a victim, was scammed by a bank’s customer care agent who requested his ATM card details. The agent seemed to know his card was about to expire and convinced Julius to share sensitive information. Within three days, Sh3 million was gone from his account.

Database hacks

Many victims like Julius are unaware of how scammers obtain their information, but it often happens through phishing emails, fake calls, or database hacks. Sometimes, unscrupulous bank employees leak sensitive information to criminal

Cyrus Omandi, a freelance data protection expert, explains that some fraud schemes involve insiders sharing crucial details with criminals.

Julius Mayani, a financial security expert, highlights the sophistication of carding operations. “Criminals are using technology to exploit banking systems and distribute stolen funds across global networks,” he says.

This makes it challenging for financial institutions and law enforcement to track and recover stolen assets. A recent international operation led by Interpol and Afripol uncovered a $8.6 million fraud scheme in Kenya, resulting in 24 arrests. The stolen funds were laundered through international transfers to companies in the UAE, Nigeria, and China, underscoring the global nature of carding.

Dr Mathew Adede, a psychologist at Jaramogi Oginga Odinga Teaching and Referral Hospital (JOOTRH), believes socio-economic factors push youth toward cybercrime.

“Poverty and unemployment create desperation, especially among youth who feel excluded from legitimate opportunities,” he says.
Social media platforms like Instagram and TikTok worsen the issue.

Dr Adede explains, “They fuel a culture of comparison, leading young people to seek wealth by any means, often resorting to illegal methods, which causes anxiety, guilt, and societal rejection.”

Julius Mayani emphasizes public awareness and robust security measures.

“The public needs to understand the risks of sharing personal information online. Banks must invest in advanced security systems to stay ahead of cybercriminals.”