Counterfeit bank notes are the most common form of fraud in Kenya, with mobile money and bank agents being the key targets.

A nationwide survey released recently by the Central Bank of Kenya shows that mobile money agents, who largely consist of M-Pesa agents, had 24,562 cases of counterfeit notes, which is 97 per cent of the fraud cases they face.

Bank agents reported 1,297 cases of fraud out of which 75 per cent involved counterfeit notes.

The six-month survey conducted in 2015 whose findings were released last week by the Central Bank of Kenya, captured 27,196 cases of fraud.

The Central Bank has, however, been reporting that the crime is on the decrease due to the lower number of counterfeit notes submitted to it.

“Counterfeit activity declined marginally with the number of counterfeit notes down from 139 counterfeit notes in the year to June 30, 2015 to 120 counterfeit notes in the year to June 30, 2016,” said CBK in its annual report.

The survey indicates that most victims of counterfeit notes do not report the incident and where duped, they may try to pass on the fake note to other unsuspecting persons.

Fraudsters usually operate in slum areas where cash velocity is especially high during market days, mainly Saturdays.

Targeting of mobile money agents and bank agents also points at efforts to exploit low training among the cash dealers in identification of fake notes especially the Ksh200 denomination note and lack of illuminating machines used to identify counterfeits.

Vendors are usually alert when handling large denomination notes — Ksh1,000 ($10) and Ksh500 ($5)