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Meet the man police link to Safaricom, NIC Bank frauds
masukuma
#71 Posted : Saturday, March 25, 2017 4:34:14 PM
Rank: Elder

Joined: 10/4/2006
Posts: 13,823
Location: Nairobi
murchr wrote:
masukuma wrote:
murchr wrote:
masukuma wrote:
the only way this whole thing makes sense is if a guy reduced tax obligations of certain companies and the sum total reduction was 4B and was paid by the said companies a fraction of the amount he "saved" them from.
Nothing else makes any sense!! nothing!! Kuiba from Kra? thats like stealing from their bank accounts... thats on the banks side. not KRA!! nothing about the 'stealing from KRA' claim makes any sense!


Are you imagining KRA doesnt handle money?

I am imagining they do... but for a "hack" to deprive them of money it has to be "money" in electronic form - right? A hacker does not automate robots to get away with gunias full of hard cash - right?



When money is entered in the system, it becomes electronic. The money is stolen the same way hackers steal from banks. With insider help so much is possible.

Kenya has seen nothing yet on cyber crimes

so what you are saying is that KRA has electronic money in its systems?
All Mushrooms are edible! Some Mushroom are only edible ONCE!
Ngalaka
#72 Posted : Saturday, March 25, 2017 4:42:58 PM
Rank: Veteran

Joined: 10/29/2008
Posts: 1,566
masukuma wrote:
murchr wrote:
masukuma wrote:
murchr wrote:
masukuma wrote:
the only way this whole thing makes sense is if a guy reduced tax obligations of certain companies and the sum total reduction was 4B and was paid by the said companies a fraction of the amount he "saved" them from.
Nothing else makes any sense!! nothing!! Kuiba from Kra? thats like stealing from their bank accounts... thats on the banks side. not KRA!! nothing about the 'stealing from KRA' claim makes any sense!


Are you imagining KRA doesnt handle money?

I am imagining they do... but for a "hack" to deprive them of money it has to be "money" in electronic form - right? A hacker does not automate robots to get away with gunias full of hard cash - right?



When money is entered in the system, it becomes electronic. The money is stolen the same way hackers steal from banks. With insider help so much is possible.

Kenya has seen nothing yet on cyber crimes

so what you are saying is that KRA has electronic money in its systems?

Yaani you steal from KRA internal software system! - then how and where do you encash the value?
Isuni yilu yi maa me muyo - ni Mbisuu
murchr
#73 Posted : Saturday, March 25, 2017 4:51:45 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
masukuma wrote:
murchr wrote:
masukuma wrote:
murchr wrote:
masukuma wrote:
the only way this whole thing makes sense is if a guy reduced tax obligations of certain companies and the sum total reduction was 4B and was paid by the said companies a fraction of the amount he "saved" them from.
Nothing else makes any sense!! nothing!! Kuiba from Kra? thats like stealing from their bank accounts... thats on the banks side. not KRA!! nothing about the 'stealing from KRA' claim makes any sense!


Are you imagining KRA doesnt handle money?

I am imagining they do... but for a "hack" to deprive them of money it has to be "money" in electronic form - right? A hacker does not automate robots to get away with gunias full of hard cash - right?



When money is entered in the system, it becomes electronic. The money is stolen the same way hackers steal from banks. With insider help so much is possible.

Kenya has seen nothing yet on cyber crimes

so what you are saying is that KRA has electronic money in its systems?


Am saying once money is entered in a system, the transaction becomes electronic. From the article

Quote:
the crooks had formed an international band that installed malware into the systems that allowed them to take control of the institutions’ computers and steal what police sources said would run into hundreds of millions.


Am sure you know how different malwares work. Its possible that some funds are channeled to individual/personal accounts via a program.

Reminds me of this case in 2015. It involved a casino.

Quote:
PALO ALTO, Calif. — In late 2013, an A.T.M. in Kiev started dispensing cash at seemingly random times of day. No one had put in a card or touched a button. Cameras showed that the piles of money had been swept up by customers who appeared lucky to be there at the right moment.

But when a Russian cybersecurity firm, Kaspersky Lab, was called to Ukraine to investigate, it discovered that the errant machine was the least of the bank’s problems.

The bank’s internal computers, used by employees who process daily transfers and conduct bookkeeping, had been penetrated by malware that allowed cybercriminals to record their every move. The malicious software lurked for months, sending back video feeds and images that told a criminal group — including Russians, Chinese and Europeans — how the bank conducted its daily routines, according to the investigators.

Then the group impersonated bank officers, not only turning on various cash machines, but also transferring millions of dollars from banks in Russia, Japan, Switzerland, the United States and the Netherlands into dummy accounts set up in other countries.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
masukuma
#74 Posted : Saturday, March 25, 2017 4:51:59 PM
Rank: Elder

Joined: 10/4/2006
Posts: 13,823
Location: Nairobi
Ngalaka wrote:
masukuma wrote:
murchr wrote:
masukuma wrote:
murchr wrote:
masukuma wrote:
the only way this whole thing makes sense is if a guy reduced tax obligations of certain companies and the sum total reduction was 4B and was paid by the said companies a fraction of the amount he "saved" them from.
Nothing else makes any sense!! nothing!! Kuiba from Kra? thats like stealing from their bank accounts... thats on the banks side. not KRA!! nothing about the 'stealing from KRA' claim makes any sense!


Are you imagining KRA doesnt handle money?

I am imagining they do... but for a "hack" to deprive them of money it has to be "money" in electronic form - right? A hacker does not automate robots to get away with gunias full of hard cash - right?



When money is entered in the system, it becomes electronic. The money is stolen the same way hackers steal from banks. With insider help so much is possible.

Kenya has seen nothing yet on cyber crimes

so what you are saying is that KRA has electronic money in its systems?

Yaani you steal from KRA internal software system! - then how and where do you encash the value?

that was my next question... how do you 'encash' this electronic value?
All Mushrooms are edible! Some Mushroom are only edible ONCE!
Ngalaka
#75 Posted : Saturday, March 25, 2017 4:52:30 PM
Rank: Veteran

Joined: 10/29/2008
Posts: 1,566
masukuma wrote:
the only way this whole thing makes sense is if a guy reduced tax obligations of certain companies and the sum total reduction was 4B and was paid by the said companies a fraction of the amount he "saved" them from.
Nothing else makes any sense!! nothing!! Kuiba from Kra? thats like stealing from their bank accounts... thats on the banks side. not KRA!! nothing about the 'stealing from KRA' claim makes any sense!

I also think this is the most plausible explanation.
Then the next logical question is - where are the corporate/persons who benefited from this crimial enterprise - for which they are not only beneficiaries but complicit as well.

They should also be on the dock, pay the tax they evaded, plus interest and penalty ++
Isuni yilu yi maa me muyo - ni Mbisuu
murchr
#76 Posted : Saturday, March 25, 2017 5:00:15 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Back to the article.

Quote:
On Wednesday evening, KRA confirmed that its staff members had been part of the syndicate and were under arrest. Commissioner General John Njiraini said KRA “played a key role in unearthing the crime … whose outcome has been the arrest of several suspects among them KRA staff in the ICT department”.

The cybercrime syndicate was operating in the Nairobi CBD, Muthaiga, Thika, and Roysambu, and had been robbing banks using Salami attacks (kidogo kidogo) and electronic transfers as well as trafficking drugs. They have also been colluding with motor vehicle importers to evade tax and were illegally registering them. During the crackdown, police recovered several vehicle number plates from one of the houses.........


Quote:
At the KRA offices in Nairobi, detectives discovered a laptop hidden within the network chambers “and connected through port 11” which allowed Mr Ogalo to have unfettered access to the system.

In Ogalo’s house, police said they found an AK47 rifle, computers, mini servers, cables, hard disks and a narcotic substance whose samples were taken to the Government Chemist for verification and classification. Ogalo is also sought by the Banking Fraud Investigation Unit (BFID), and is suspected to have been involved in the theft of Sh50 million from the Kenya Police Sacco.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
masukuma
#77 Posted : Saturday, March 25, 2017 7:13:20 PM
Rank: Elder

Joined: 10/4/2006
Posts: 13,823
Location: Nairobi
murchr wrote:
Back to the article.

Quote:
On Wednesday evening, KRA confirmed that its staff members had been part of the syndicate and were under arrest. Commissioner General John Njiraini said KRA “played a key role in unearthing the crime … whose outcome has been the arrest of several suspects among them KRA staff in the ICT department”.

The cybercrime syndicate was operating in the Nairobi CBD, Muthaiga, Thika, and Roysambu, and had been robbing banks using Salami attacks (kidogo kidogo) and electronic transfers as well as trafficking drugs. They have also been colluding with motor vehicle importers to evade tax and were illegally registering them. During the crackdown, police recovered several vehicle number plates from one of the houses.........


Quote:
At the KRA offices in Nairobi, detectives discovered a laptop hidden within the network chambers “and connected through port 11” which allowed Mr Ogalo to have unfettered access to the system.

In Ogalo’s house, police said they found an AK47 rifle, computers, mini servers, cables, hard disks and a narcotic substance whose samples were taken to the Government Chemist for verification and classification. Ogalo is also sought by the Banking Fraud Investigation Unit (BFID), and is suspected to have been involved in the theft of Sh50 million from the Kenya Police Sacco.


exactly... it makes sense...
Quote:
had been robbing banks using Salami attacks and electronic transfers
<-- YES BANKS...SALAMI ATTACKS ONLY WORKS WITH BANKS OR AIRTIME E.T.C. basically move small amounts around to where someone else can use them or take them off the system. That cannot happen with KRA coz they don't have electronic currency that someone can 'use' or 'take out'

Quote:
They have also been colluding with motor vehicle importers to evade tax and were illegally registering them.
now this is what from the onset I was saying... the only way you can 'rob' KRA (directly) would be reducing tax obligations of people. A car is supposed to attract a tax of 300k, you pay 100k... it looks like 300k on the system. you pay the guy who 'facilitated' 100k!
All Mushrooms are edible! Some Mushroom are only edible ONCE!
Lolest!
#78 Posted : Saturday, March 25, 2017 7:38:40 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
What about payments? What's the system for payments like especially via EFT?

Some organizations implement solutions that will generate a file which when sent to the bank executes a payment
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Ngalaka
#79 Posted : Saturday, March 25, 2017 8:03:08 PM
Rank: Veteran

Joined: 10/29/2008
Posts: 1,566
Lolest! wrote:
What about payments? What's the system for payments like especially via EFT?

Some organizations implement solutions that will generate a file which when sent to the bank executes a payment

Electronic payments made on Bank platforms, from an account held at a bank to another.

Certain Banks may also allow some of their clients some leeway to operate their accounts with more flexibilities, but the accounts remain held and operated by the Bank
Isuni yilu yi maa me muyo - ni Mbisuu
murchr
#80 Posted : Saturday, March 25, 2017 8:18:30 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
masukuma wrote:
murchr wrote:
Back to the article.

Quote:
On Wednesday evening, KRA confirmed that its staff members had been part of the syndicate and were under arrest. Commissioner General John Njiraini said KRA “played a key role in unearthing the crime … whose outcome has been the arrest of several suspects among them KRA staff in the ICT department”.

The cybercrime syndicate was operating in the Nairobi CBD, Muthaiga, Thika, and Roysambu, and had been robbing banks using Salami attacks (kidogo kidogo) and electronic transfers as well as trafficking drugs. They have also been colluding with motor vehicle importers to evade tax and were illegally registering them. During the crackdown, police recovered several vehicle number plates from one of the houses.........


Quote:
At the KRA offices in Nairobi, detectives discovered a laptop hidden within the network chambers “and connected through port 11” which allowed Mr Ogalo to have unfettered access to the system.

In Ogalo’s house, police said they found an AK47 rifle, computers, mini servers, cables, hard disks and a narcotic substance whose samples were taken to the Government Chemist for verification and classification. Ogalo is also sought by the Banking Fraud Investigation Unit (BFID), and is suspected to have been involved in the theft of Sh50 million from the Kenya Police Sacco.


exactly... it makes sense...
Quote:
had been robbing banks using Salami attacks and electronic transfers
<-- YES BANKS...SALAMI ATTACKS ONLY WORKS WITH BANKS OR AIRTIME E.T.C. basically move small amounts around to where someone else can use them or take them off the system. That cannot happen with KRA coz they don't have electronic currency that someone can 'use' or 'take out'

Quote:
They have also been colluding with motor vehicle importers to evade tax and were illegally registering them.
now this is what from the onset I was saying... the only way you can 'rob' KRA (directly) would be reducing tax obligations of people. A car is supposed to attract a tax of 300k, you pay 100k... it looks like 300k on the system. you pay the guy who 'facilitated' 100k!


There's no way money would disappear in the bank without manipulation of transactions at KRA.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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