Ghana’s banking sector and Specialised Deposit-Taking Institutions (SDIs) experienced a reduction in financial fraud, with losses amounting to approximately GH₵56 million in 2022.
This represents a decrease of 7.88% compared to the GH₵61 million recorded in 2021.
However, despite the decline in overall losses, the number of attempted fraud cases within the banking and SDI sectors increased to 2,998 in 2022, marking a 27.74% rise compared to the 2,347 cases reported in 2021.
These findings were contained in the 2022 trends and statistics report on fraud in the banking sector, SDIs, and Payment Service Providers (PSPs), published by the Bank of Ghana (BoG). The report covers the period from January 1 to December 31, 2022.
The report highlighted several major fraud typologies that impacted financial institutions, including forgery and manipulation of documents, fraudulent withdrawals, cheque fraud, cyber/email scams, and cash theft (cash suppression).
Forgery and manipulation of documents emerged as the most prominent fraud typology, resulting in the highest loss of GH₵33 million. Fraudulent withdrawals from customers’ accounts accounted for losses of GHS7 million, with the Central Bank noting that many of these cases involved staff members of banks and SDIs. Cheque fraud, predominantly arising from cloned cheques, caused losses amounting to GH₵5 million.
The report indicated a decrease in the number of fraud cases involving staff members, with 188 cases reported in 2022 compared to 278 cases in 2021. The report attributed most of these incidents to cash theft (cash suppression) from customers’ accounts and identified the Rural and Community banking sector as particularly susceptible to this fraud typology.
While staff involvement in fraud persists, the report highlighted a downward trend in the numbers due to stringent sanctions imposed by the Bank of Ghana and enhanced advocacy for improved controls within the sector.
To combat the rise in fraudulent cases and minimize losses, the Bank of Ghana directed banks to promptly communicate fraud incidents to both the Bank of Ghana and the Ghana Association of Banks. This information-sharing would help raise awareness among all institutions and prevent similar occurrences.
Banks and SDIs were also urged to enhance fraud awareness among their customers and regularly review the adequacy and effectiveness of their risk management and internal control frameworks to detect and prevent fraud and other financial crimes within their organizations.
Furthermore, the Central Bank advised banks and SDIs to report financial crimes, including all cases of cash theft (cash suppression), to the Ghana Police Service and provide updates to the Bank of Ghana until the cases are resolved.
SOURCE: GraphicOnline
