The Bank of Ghana has called for a heightened focus on fraud prevention within the country’s banking sector, urging institutions to adopt stronger security protocols. The central bank’s directives include bolstering dual-control mechanisms and enforcing mandatory staff rotations for employees in sensitive positions. These measures aim to reduce the risk of fraud and safeguard financial institutions from growing threats.
Despite a 18% decrease in fraud incidents between 2023 and 2024, the total value at risk from fraudulent activities has increased by 11%, rising from GH¢72 million in 2023 to GH¢80 million in 2024. The most significant form of fraud was identified as forgery and document manipulation, which represented 67% of the total value at risk for banks and specialized deposit-taking institutions (SDIs). This type of fraud saw a dramatic spike in losses, from GH¢7.47 million in 2023 to GH¢53.5 million in 2024, largely due to a single large-scale incident.
Another concerning trend highlighted in the report is the surge in identity theft, which escalated from GH¢0.6 million in 2023 to GH¢5.7 million in 2024. The rise in identity fraud was attributed to poor due diligence, particularly in transactions involving the Ghana Card. Financial institutions are facing difficulties in recovering losses from fraud, as lengthy legal procedures often impede the restitution process.
The report also includes data from Payment Service Providers (PSPs), which saw an 18% increase in the total value at risk, climbing to GH¢19 million in 2024. In light of these developments, the Bank of Ghana has emphasized the importance of creating a security-aware culture within banks. It recommended regular forums and discussions to enhance staff awareness and preparedness against fraud.
Source: Citi newsroom