Despite the resounding bark of promises from Ghanaian authorities to combat financial fraud, their teeth seem conspicuously absent when it comes to taking decisive action against perpetrators.

As per the ‘Banks, SDIs, and PSPs Fraud Report – 2022’ by the Bank of Ghana (BoG), data gathered from banks, Specialized Deposit-Taking Institutions (SDIs), and Payment Service Providers (PSPs) reveals that there were 15,164 recorded fraud cases in 2022, resulting in a total loss of around GH¢82 million.

The report stated that 2022 recorded 2998 attempted fraud cases in the banking and SDI sectors. The total loss value recorded stood at approximately GH¢56 million as

compared to approximately GH¢61 million in 2021.

The major drivers in the sector included forgery and manipulation of documents, fraudulent withdrawals, cheque fraud, cyber/email, and cash theft (cash suppression).

PSPs on the other hand recorded 12,166 mobile money-related fraud incidents in 2022 with the total value of fraud at GH¢ 27 million,

Against this backdrop, the government’s decision to link SIM cards with Ghana cards and the usage of Ghana cards as the sole identification document for any bank transaction. The goal was simple: by connecting each SIM card to a confirmed identity, the hope was to reduce fraud, safeguard users, and uphold the trustworthiness of financial transactions in Ghana’s financial space.

However, the menace of fraud continues unabated.

The Bank of Ghana urges banks to regularly submit reports on fraud cases as part of its increased efforts to tackle the growing problem of financial fraud linked to electronic money channels in the country.

To address this challenge, the BOG is collaborating with industry stakeholders to enhance their capabilities and establish strong regulatory frameworks to proactively combat emerging threats.

During a workshop with the Committee for Co-operation Between Law Enforcement Agencies and the Banking Community (COCLAB), Dr. Kwasi Osei Yeboah, Head of the Financial Stability Department at the Bank of Ghana, emphasized the importance of reversing the upward trend of fraudulent activities impacting the financial sector.

“Banks are supposed to report all fraud cases to the Bank of Ghana. Even if nothing happens, they are supposed to do it and send a mail report to say that, nothing happened within the space. So every month banks are to send the reports.”
Dr. Kwasi Osei Yeboah

“It is through these reports that we identify the fraud cases associated with SIM swaps. This is important to us because it speaks to concerns that customers in the banking space are very much concerned about fraud in the sector”, he said.

Sim swap fraud is when scammers trick your mobile carrier into transferring your phone number to a SIM card they control. Once they have control of your number, they can intercept your calls and messages, including those from your bank for verification purposes. With this access, they can reset passwords and gain entry to your bank account, potentially stealing your money or personal information.

Though worried about this development, the Central Bank has assured of its commitment to address the underlying factors.

“Fraud is a hindrance to promoting financial soundness and integrity. Customers must have confidence in the financial system and be inclined to participate in the space. So it is also a commitment for us to ensure that we have a very safe financial environment. So we will continue to engage, investigate, and prosecute fraud.”
Dr. Kwasi Osei Yeboah

Lack of Will to Prosecute Fraud Cases

financial fraud is — Financial fraud is increasing

In the battle against the surge of financial fraud in Ghana, the finger often points towards financial institutions’ purported failure to report cases. However, a closer look reveals a deeper issue lying in the lack of concerted action and collaboration among authorities responsible for investigation and prosecution.

The Bank of Ghana (BoG), the National Communication Authority (NCA), telecommunication companies, and the police are pivotal in this fight, yet their collective efforts often fall short. The failure to coordinate effectively allows fraudsters to operate with impunity, perpetuating the cycle of deceit and victimization.

A stark illustration of this systemic failure is exemplified in a recent incident involving an anonymous victim who fell prey to a fraudulent scheme via mobile money. The victim, duped by an unidentified caller claiming a mistaken transfer of 1000 cedis to his mobile wallet, reported the matter to the telecommunications company.

Despite assurances of investigation, no concrete action was taken. Shockingly, the victim received another fraudulent call from the same number a month later, illustrating a blatant disregard for justice and accountability.

That’s the main issue. It seems authorities are stacked in the loop of organizing meetings, workshops, and planning on paper without getting the job done on the ground. Without a genuine commitment to collaboration and enforcement, fraudsters will continue to thrive, exploiting gaps in the system to the detriment of innocent citizens.