Ghana’s Financial Sector Sees Rising Fraud Cases Despite Improved Controls

The Bank of Ghana’s 2024 fraud report reveals a concerning trend in the country’s financial sector, with total reported cases increasing to 16,733 last year, up 5% from 2023.

While monetary losses from some traditional fraud methods declined significantly, new patterns of misconduct and digital fraud are emerging as growing threats.

A particularly troubling finding shows 155 bank and special deposit-taking institution employees were dismissed for involvement in 365 fraud cases, marking a 33% increase in staff-related incidents compared to the previous year. Most internal fraud cases involved cash theft and suppression, where employees manipulated transactions for personal gain. However, improved detection systems helped reduce losses from such activities dramatically, from GH¢16.7 million in 2023 to GH¢3.9 million last year.

Electronic fraud continues to dominate the landscape, accounting for 94% of all reported cases through payment service providers. While the number of digital fraud incidents remains alarmingly high at 15,673, the associated losses saw a more moderate increase of 18% to GH¢19 million. This suggests that enhanced security measures may be limiting the financial impact of each incident, even as the volume grows.

The report highlights some notable successes in fraud prevention. Cheque fraud losses plummeted from GH¢6 million to just GH¢28,000, while cyber and email fraud losses dropped 91% to GH¢933,000. SIM swap fraud, once a major concern, was completely eliminated in 2024.

However, these gains are offset by dramatic increases in other sophisticated schemes. Document forgery and manipulation losses surged from GH¢7.5 million to GH¢53.5 million, and impersonation fraud grew eightfold to GH¢5.77 million. These figures indicate fraudsters are adapting their methods to exploit vulnerabilities in more complex financial processes.

The Bank of Ghana has reiterated its call for financial institutions to strengthen internal controls and staff monitoring. As Ghana’s financial sector continues to digitize, the challenge will be maintaining robust security systems that can evolve as quickly as the threats they aim to prevent. The report’s findings underscore the need for ongoing vigilance and investment in fraud prevention measures across all financial service providers.

This persistent fraud problem comes at a critical time for Ghana’s financial sector, which is working to rebuild public trust while expanding access to digital financial services. The central bank faces the dual challenge of encouraging innovation in financial technology while ensuring adequate safeguards are in place to protect consumers and maintain system integrity. The effectiveness of these efforts will have significant implications for Ghana’s broader economic stability and growth prospects.