The Rise of Carding: How Fraudsters Make Money in Kenya

In recent years, a new wave of cyber fraud has taken hold in Kenya, propelling some under-25-year-olds into lives of opulence well beyond what many consider attainable at their age. Known as carding, this fraudulent activity is the backbone of a growing subculture in Kenya that glorifies quick money, designer clothes, luxury cars, and high-end lifestyles. But what is carding, how do fraudsters make money from it, and why is it so prevalent among Kenyan youth?

What is Carding?

Carding, also called "credit card fraud," involves stealing or using stolen credit card information to make unauthorized purchases, primarily online. Fraudsters, referred to as "carders," typically acquire this sensitive data through phishing schemes, hacking databases, buying stolen credentials from the dark web, or skimming devices placed on ATMs and POS terminals.

Once the information is obtained, it’s used to purchase goods and services or launder money through sophisticated networks. The anonymity of the internet, coupled with the growing popularity of e-commerce in Kenya, makes it an attractive playground for carders.

How Kenyan Youth Make Money Through Carding

1. Purchasing and Reselling Expensive Items

Fraudsters use stolen credit card details to buy high-end electronics, designer clothing, and luxury items from international e-commerce sites. These items are then resold locally at lower prices. The profits from these sales can be substantial, fueling their extravagant lifestyles.

For instance, a carder may use stolen credentials to purchase a $1,000 laptop, resell it for KES 80,000, and pocket the entire amount since no money was initially spent.

2. Gift Cards and Cryptocurrency Laundering

A popular strategy is to purchase gift cards using stolen credit card information. These gift cards are then sold on peer-to-peer marketplaces or converted into cryptocurrency, which provides a layer of anonymity. Cryptocurrencies like Bitcoin are ideal for laundering stolen money, making it nearly impossible for authorities to trace the transactions.

3. Membership Access and Dropshipping Scams

Some Kenyan fraudsters have perfected the art of using stolen cards to pay for high-value subscriptions like streaming services, software licenses, or virtual goods. They may then resell access to these services, earning a steady income.

Others use stolen cards for dropshipping scams, setting up fake online stores and pocketing the payments while stolen card details cover the costs of goods being shipped to customers.

4. Exploiting Social Media and Dark Web Connections

Carding is often glamorized on social media platforms, with carders flaunting their wealth and subtly recruiting others into the scheme. Some Kenyan youth also connect with international fraud networks via the dark web, gaining access to sophisticated tools like carding software and tutorials for beginners.

Why Are Kenyan Youth Drawn to Carding?

A. Economic Pressures and High Unemployment Rates

With Kenya’s high youth unemployment rate, many young people see carding as an opportunity to escape poverty. The promise of easy money, coupled with limited job prospects, makes it an alluring option.

B. Peer Pressure and Social Media Influence

Social media has fueled the obsession with wealth and status. Lavish lifestyles, luxury cars, and flashy outfits posted by influencers often push young people to seek shortcuts to achieve the same.

C. Lack of Awareness and Regulation

Kenya’s cybersecurity laws are still catching up to the scale of cyber fraud. While initiatives like the Kenya Cybersecurity Report have shed light on rising threats, enforcement remains lax. Additionally, many young people remain unaware of the legal and moral implications of carding until it’s too late.

The Consequences of Carding

While carding may seem like a lucrative shortcut, it comes with severe consequences:

• Legal Penalties: Carding is a criminal offense punishable by hefty fines and lengthy prison sentences under Kenyan law.
• Ruined Reputations: Once exposed, fraudsters often face ostracism and lose future opportunities for legitimate employment or education.
• Victim Impact: Beyond the fraudsters, carding affects innocent credit card holders who face financial losses and distress.

What Can Be Done?

To curb the rise of carding in Kenya, a multi-pronged approach is needed:

• Public Awareness Campaigns: Educate young people about the dangers and consequences of cyber fraud.
• Stronger Cybersecurity Measures: Businesses and banks should invest in advanced security protocols like two-factor authentication and fraud monitoring.
• Youth Empowerment Programs: Create more job opportunities and entrepreneurship initiatives to provide alternatives for Kenya’s tech-savvy youth.

Final Thoughts

The rapid growth of carding among Kenyan youth highlights the intersection of economic pressures, technological advancement, and social influences. While some may view it as an easy way to riches, the reality is that carding poses significant legal, financial, and ethical risks. Addressing the root causes—unemployment, lack of awareness, and glorification of illegal activities—can help steer Kenya’s youth toward a more secure and legitimate future.