A report released by the Bank of Ghana (BoG) reveals that 716 fraud cases were reported by banks in 2024, marking a 26% decline compared to the 969 cases recorded in 2023. This decline is attributed to strengthened internal controls within the banking sector, reflecting the industry’s ongoing commitment to combating financial crime.
The BoG emphasized that fraud prevention and detection remain critical to safeguarding the financial sector’s integrity. Banks are mandated to report fraud incidents promptly to enable effective monitoring and response.
Sector-Wide Observations
Despite the decline in fraud cases within the banking and specialized Deposit-Taking institutions (SDI) sectors, the Payment Service Providers (PSP) sector experienced a rise in reported fraud incidents in 2024. Data indicates that while the SDI sector saw a reduction in both the number of fraud cases and the associated value at risk, the overall fraud count across the three sub-sectors—banks, SDIs, and PSPs—rose by 5%, from 15,865 cases in 2023 to 16,733 in 2024. This increase corresponds to a total value at risk of approximately GH¢99 million in 2024, compared to GH¢88 million in 2023, marking a 13% escalation.
Trends in Fraud Types
The report highlighted significant shifts in fraud patterns. While cases of cyber/email fraud, fraudulent withdrawals, and cash theft/suppression decreased, instances of forgery, document manipulation, and impersonation/identity theft surged. Notably, the value at risk from forgery and document manipulation increased sevenfold to account for 67% of the total value at risk for banks and SDIs, up from GH¢7.47 million in 2023.
Key Statistics and Challenges
Attempted Fraud: Attempted fraud cases in banks and SDIs dropped by 18% in 2024. However, the total value at risk associated with these cases rose by 11%, from GH¢72 million in 2023 to GH¢80 million in 2024.
PSP Sector: The PSP sector reported GH¢19 million in value at risk from 15,673 cases, representing increases of 18% and 7% in value at risk and case count, respectively, compared to 2023.
Recovery Challenges: The report underscored the persistent difficulty in recovering potential losses due to lengthy legal proceedings, which often discourage institutions from pursuing cases to conclusion.
Strategic Focus Moving Forward
The BoG reaffirmed its commitment to maintaining financial integrity by prioritizing robust fraud prevention mechanisms, industry collaboration, and capacity building for fraud detection. It also called for streamlined legal frameworks to expedite the resolution of fraud cases and enhance recovery rates for affected institutions.
This latest report underscores the need for vigilance and innovation in tackling emerging fraud threats, even as the banking sector makes commendable strides in improving internal controls.
Story by: Mercy Addai Turkson #ahotoronline.com