Uncertainty over private data held by Betika after system breach, Sh11.4million cash siphoning

The safety and security of private data belonging to gambling fans held by Betika, a betting firm owned by Shop & Deliver Limited has been put into question following revelation of daring cyber security breach of their systems and cash siphoning amounting to Sh11.4million by a 26-years old former Meru University Information Technology second-year dropout Seth Mwabe.

Mwabe has since been arraigned and charged with cyber fraud related crimes through a miscellaneous application for orchestrating a sophisticated cyberattack that saw Sh11.4million (€75,285) siphoned from Betika, one of Kenya’s leading online betting companies.

The 26-year-old tech guru is believed to have hacked Betika’s payment system specifically the Paybill and siphoned the colossal amount of money.

According to the DCI’s Banking Fraud Unit, the incident occurred in July 2025.

Mwabe reportedly bypassed Betika’s payment security using sophisticated methods like SQL injection

Mwabe is accused of exploiting weaknesses in Betika’s payment service provider, Afrisend Money Transfer Limited, to execute 38 fraudulent transactions via a Diamond Trust Bank account linked to the Pesalink platform.

According to evidence adduced by detectives attached to DCI’s Anti-Banking Fraud Unit (BFIU), they uncovered a makeshift cyber lab in his residence containing advanced servers, laptops, a money-counting machine and a safe, which authorities allege facilitated the heist.

While appearing before Senior Principal Magistrate Ben Mark Ekhubi at Milimani Law Courts yesterday, the prosecution, led by Chief Inspector Julius Cheruiyot, requested to be granted twenty days to detain Mwabe at Capitol Hill Police Station pending completion of investigations.

They cited the need to gather evidence from Telegram, Starlink, the Kenya Bankers Association and M-Pesa records, as some of these entities operate partly outside Kenyan jurisdiction.

The defence opposed the extended detention, arguing that bail is a constitutional right under Article 49 and that investigators already possessed the seized equipment, rendering further custody unnecessary.

However, in his defence, Mwabe claimed that he was testing software as part of his legitimate cybersecurity consultancy work. He said: “I assure you, I did not steal; I was merely testing software I had developed, and the money unexpectedly appeared in my account.”

However, investigators allege he shared a fraudulent Telegram bot link to siphon funds, personally benefiting from the scheme. DCI officials have also linked him to similar frauds targeting other major brands, casting doubt on his claims and suggesting a larger pattern of criminal activity.

Despite the defence’s objections, the court ordered that Mwabe be held until tomorrow, September 3, 2025, when a bail decision would be made. He faces charges of unauthorised access, intent to commit further offences and stealing, which could lead to up to 20 years in prison if convicted.

When contacted by The Informer Media Group, by the time of going to broadcast, Betika had not responded to our queries.

Further, Betika is yet to publicly disclose the exact technical vulnerabilities Mwabe exploited, but the breach underscores the challenges of securing digital platforms in an industry that thrives on rapid transactions as well as the safety and security of the private data of betting fans held on their platforms.

Cases of cyber fraud are on the rise targeting financial institutions, corporates and individuals.

The DCI’s recent efforts, including the arrest of five other suspects earlier this year for stealing Sh3.2million (€21,132) from bank accounts, highlight the escalating threat of cybercrime targeting Kenya’s financial sector.