According to the Bank of Ghana’s latest annual Fraud Report, Ghana’s regulated financial institutions reported a sharp increase in fraud cases and economic losses in 2023.
The institutions, which include banks, specialized deposit-taking institutions (SDIs), and payment service providers (PSPs), recorded 15,865 fraud incidents, resulting in losses of GHS88 million.
This represents a 5% rise in fraud cases from 15,164 in 2022 and a 7% increase in financial losses from GHS82 million the previous year. The report aims to shed light on fraud trends and bolster the integrity of Ghana’s banking system.
Out of the total reported losses, banks and SDIs collectively faced GHS167 million in fraud-related losses.
However, GHS95 million of these losses were recovered through collaborative fraud control measures, reducing the net loss to GHS72 million. PSPs accounted for the remaining GHS16 million in losses.
The report highlights SIM swap fraud, which emerged as a significant issue in 2023.
This type of fraud, involving the fraudulent takeover of SIM numbers linked to bank accounts, resulted in losses of GHS4.633 million.
This starkly contrasts previous years, which reported zero cases of SIM swap fraud.
The report also observed a decrease in attempted fraud cases in the banking and SDI sectors, dropping by 59% compared to 2022. Despite this, the total loss from these attempts increased by 29% to approximately GHS72 million, influenced by high-value foreign currency cases.
In the PSP sector, fraud losses decreased by 38% to GHS16 million despite a 20% rise in fraud cases, totalling 14,655.
Staff involvement in fraudulent activities has also risen, with 274 staff members implicated in fraud in 2023, a 46% increase from 188 in 2022. The majority of these cases (77%) involved cash theft.
In response to the rising fraud rates, the Bank of Ghana has called on banks and SDIs to strengthen internal controls and enhance staff vetting and training.
The central bank has issued new directives to curb fraud, including measures for PSPs to address SIM swap fraud and improve fraud risk management.
The Bank of Ghana continues to engage with institutions to develop action plans and strengthen collaboration in the fight against financial fraud, underscoring the need for robust fraud prevention strategies in the sector.