Banks Lose GH¢88m To Fraudsters- Says BoG

Dr. Ernest Addison

 

The Bank of Ghana (BoG) has released its annual Fraud Report for 2023, revealing a 5% increase in fraud cases and a 7% rise in losses, totaling GH¢88 million.

According to the report, the banking and Specialized Deposit-Taking Institutions (SDIs) sectors recorded 15,865 fraud cases in 2023, up from 15,164 in 2022.

The Payment Service Providers (PSPs) sector also saw a 20% increase in incidents, with 14,655 cases reported.

The report highlights fraudulent withdrawals from victims’ accounts, cyber/email fraud, and cash theft (cash suppression) as areas of concern.

SIM swap-related fraud, which targets individuals with banking applications on their mobile phones, remains a significant threat.

While attempted fraud cases in the banking and SDI sectors declined sharply by 59% in 2023, the total loss value associated with these cases stood at approximately GH¢72 million, a 29% increase over the 2022 figure.

The PSP sector recorded a loss of GH¢16 million involving 14,655 cases in 2023, representing a 38% decline compared to the GH¢26 million recorded in the previous year.

The BoG has attributed the rise in fraud cases to various factors, including the increasing use of digital banking services and the growing sophistication of cybercrime.

To combat this trend, the BoG has strengthened its engagement with relevant stakeholders to enhance collaboration in the fight against cyber-related fraud.

The central bank has also issued directives to banks, SDIs, and PSPs aimed at reducing the incidence of fraud.

The report comes amid growing concerns over the security of Ghana’s financial sector.

In recent years, the country has seen several high-profile banking scandals, including the collapse of several banks and the prosecution of former bank executives.

The BoG’s Fraud Report is part of efforts to promote transparency and accountability in the financial sector.

The report provides valuable insights into the nature and scope of fraud in Ghana’s banking and financial services industry.

As the BoG continues to work towards improving the security and integrity of the financial sector, stakeholders are calling for increased vigilance and cooperation to combat the rising threat of fraud.

The full report is available on the Bank of Ghana’s website.

Background:

The Bank of Ghana’s annual Fraud Report provides a comprehensive overview of fraud trends and losses in Ghana’s banking and financial services industry.

In 2022, the report revealed a total of 15,164 fraud cases, with losses totaling GH¢82 million.

The 2023 report shows a continued rise in fraud cases and losses, highlighting the need for increased vigilance and cooperation among stakeholders.

-BY Daniel Bampoe