Concerns Over Rising Fraud in Ghana’s Finance Sector
A recent report from the Bank of Ghana has revealed a troubling surge in fraudulent activities within the nation’s financial sector, including banks and specialised deposit-taking institutions (SDIs). The report indicates a 5% increase in fraud cases in 2024, with incidents rising to 16,733 compared to the previous year.
Interestingly, while conventional banks reported a slight decrease in fraud cases, SDIs and Payment Service Providers (PSPs) saw a significant escalation. Particularly concerning is the immense rise in value at risk from forgery and document manipulation, which skyrocketed to GH¢53.5 million, an almost eightfold increase from GH¢6.9 million in 2023. Identity theft losses also soared nearly ninefold.
The report further exposes a 33% rise in staff involvement in fraudulent activities. In 2024, 365 employees were implicated in such activities, up from 274 in 2023. Cash theft or suppression emerged as the most prevalent form of internal fraud, with 274 employees directly implicated. Despite the gravity of these offenses, only 43% of the involved staff were dismissed, a situation attributed to protracted and complex legal procedures.
The Bank of Ghana has expressed concern over the consistent rise in staff involvement in fraud, urging financial institutions to intensify recruitment screening and rigorous prosecution of offenders. The financial sector continues to struggle with asset recovery, managing to recover just GH¢3 million of the estimated GH¢83 million at risk. The report underscores the need for a “zero tolerance” culture towards internal fraud and stronger collaboration among financial entities, regulators, and law enforcement to combat the increasing threat of financial crime.
Source: 3News