News Beyond News

Co-op Bank Customers Cry Foul Over Constant System Failure, Internal Fraud Claims at the Bank

4 min read
Spread the post

Customers of Co-operative bank, one of the biggest banks in Kenya, cries foul over system failure that went all day long.

The whole day, it’s banking hall couldn’t accept transactions.

The bank online system remained down all day.

For close to a month, the bank’s online system has been down on numerous occasions leading to lost Mpesa transactions and countless inconviniencess to their esteemed customers.

The bank has not cared to even apologize to its clients even on e-mail, text or calls save for a no convincing press release done few minutes ago on social media.

One of their clients recently claimed that “It’s the same bank that when you go to do deposit of bulk money. A few notes will ussually dissapear at the teller, boring bank of late!”

Many of their clients are wondering what’s wrong with unCO-OPERATIVE BANK. It’s also said that they have employees with big attitudes.

“The main reason why such happens is banking fraud is numerous with these online platforms. So in most cases where such is detected, they disable the entire system and subject clients to numerous maintain notices. Take note that when the bank system is down without notice, they are reconciling the affected accounts” An expert revealed to 254news.co.ke

The service disruption this time round had deeper punitive financial consequences.
Not even over the counter cash bankings was possible today.

One Carole, their long time client said, “Been trying to Transact since Wednesday last week deeply frustrating”

For other clients, they have been losing money mysteriously, “It’s the same bank if you’re not keen ur money will keep on disappearing,I lost 50k, went to the manager got back 40 closed the account and went to other banks” a source revealed.

Another client revealed that, “….left this bank after loosing 5k in my account under circumstances nobody could explain. Their employees are big fraudsters…”

For another client, “Even if Coop was the only bank remaining in Kenya, I would gladly put my money beneath the pillow. Useless bank with employees with big attitude”

The above complaints are not new with Co-op bank. They have always had such problems, they have always been the bank with the longest queues. I wonder why anyone would open an account with them unless they are financing your projects.

You are all aware that co-operative Bank is not new to controversy. The bank has suffered by rising employee fraud, IT system malfunctions.

The Co-operative Bank has been hit by cases of fraud perpetrated by bank employees who work in cahoots with external persons to obtain money from the bank.

The bank’s internal investigations have established a link between employees who know about malfunction in some of the bank’s IT systems and account holders who take advantage of the system.

While some of the cases have ended up in the court and others remain under police investigation, the bank, keen to protect its image, has hardly reported the full extent of the problem to authorities and has on occasions refrained from pressing charges against account-holders implicated in the fraud.

Like many banks, Co-op Bank runs bank and card systems, Bank Master and Trans Master, separately. When the bank closes operations at the end of the day, the Bank Master goes to sleep, but the Trans Master that supports ATMs and connects the bank’s account-holders to international card system works 24 hours.

Every new work day, the Bank Master should automatically take on board all transactions a customer may have made on Trans Master during the night.

However, due to the bank’s malfunctioning systems, sometimes transactions from the Trans Master have to be entered manually on the Bank Master, according to information the bank provided to the Milimani Commercial Court in a case lodged against it by a customer the bank later accused of abusing its systems.

Anthony Kimani Chege, who operated Account Number 01109127579300 at the Nairobi Business Centre Branch, went to court in May 2011 to press for Sh14 million the bank had deposited in his account through the fictitious betting wins but which the bank discovered and froze before he could withdraw the money.

The account-holder used his debit card No.4407830011038792 for gambling online.

After a series of activity, by 7 May 2011 his account had a credit balance of Sh4,829,965.15. On 9 May 2011, the bank informed him that his account had a debit balance of Sh14,235,121 but refused to provide him with a copy of his Bank Statement.

He went to court seeking orders for Coop Bank to be compelled to un-freeze his account and release him the Sh4,829,969.15 being the credit in his account when it was frozen. While he lost the case, the hearing unearthed massive impropriety on Coop Bank staff members and negligence from senior management that refused to take action for months according to the court.

Spread the post

Email your news TIPS to info@254news.co.ke to get your article published.

Leave a Reply

Your email address will not be published.