Govt Exposes How Stolen Payslips Are Used to Take Bank Loans, Leaving Employees in Debt

The Financial Reporting Center has exposed a rise in cases where criminal elements steal payslips and appointment letters to secure bank loans.

As a result, unsuspecting employees are left in debt for loans they never took.

In its 2024 Money Laundering and Terrorist Financing Trends and Typologies Report, the government body cited a case where 3 individuals stole payslips of some employees and took out loans amounting to Ksh10 million.

According to the report, the three individuals (who were named as John, Mark, and James) forged identification documents, payslips, and appointment letters of the victims to open bank accounts.

In 7 months, it was reported that three individuals received Ksh10 million from the banks.

After the loans were disbursed, the individuals withdrew the money, with others transferred to their mobile money.

"Between 5/04/2022 and 31/10/2022, John, Mark, and James obtained a total of Ksh10,000,000.00 through fraudulent loans using forged identification documents, payslips, and appointment letters in the names of Mike, Mary, and Maina from 3 financial institutions," read the report in part.

"They immediately requested loans at the bank, which were approved and disbursed. Here, they provided stolen payslips of their victims as support for the loans and as collateral."

As highlighted in the report, the victims of the fraud only realized they were in debt after deductions were effected on their pay.

"The victims of this fraud realized deductions on their payslips and raised complaints with their employers, which prompted the bank to review these accounts and report to law enforcement agencies," read the report in part.

How to Protect Yourself

Keep payslips, appointment letters, and IDs private. All employed Kenyans are always advised to avoid sharing documents, even with their close colleagues.

Kenyans should also avoid oversharing personal employment details on social media.

Always review your payslip each month to check for suspicious deductions or loan repayments you didn’t initiate. In such a case, always take up the matter with your employer and the financial institution.

If you lose your ID card, payslip, or appointment letter, report the loss to the police.

Avoid oversharing personal employment details (e.g., employer, salary, ID number) on social media.

One can also obtain your credit report from licensed Credit Reference Bureaus at least once or twice a year to check for loans or accounts you didn’t authorize. Always report any inaccurate information immediately to both the bureau and the lender.

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