The Bank of Ghana has published the 2023 Banking Sector Report with a 5 percent increase in fraud cases.
The total loss value increased to Ghc 88 million from the Ghc 82 million recorded in 2022.
The report detailed that from the three sub-sectors, which include banks, specialised deposit-taking institutions (SDIs), and payment service providers (PSPs), the count of fraud cases increased to 15,865 in 2023 from 15,164 in 2022. This represents a 5 percent rise in the count of fraud cases recorded.
According to the report, there was a heightened fraudulent withdrawals from victims’ accounts, cyber and email fraud and cash suppression.
The Central has therefore issued key directives to the banks to help reduce fraud which include Banks should update their technologies and tools with enhanced built-in security features; Strengthened security protocols for account access and transactions;Usage of mobile applications that allow auto logins be deactivated; Enhanced Know Your Customer procedures during onboarding and Fraud sensitisation campaign with customers
It said an analysis of the 2023 data showed that fraud heightened in fraudulent withdrawals from victims’ accounts, cyber or email fraud, and cash theft (cash suppression).
“Another area of concern is SIM swap-related fraud, where SIM numbers linked to banking accounts are fraudulently taken over and monies subsequently withdrawn from the accounts,” the report said.
The fraudsters, the report said, targeted individuals who have banking applications on their mobile phones and have linked their bank accounts to mobile money wallets.
While attempted fraud cases in the banking and SDI sectors declined sharply by 59% in 2023 compared to 2022, the total loss value associated with these cases stood at approximately GH¢72 million, a 29% increase over the 2022 figure of GH¢56 million recorded.
The sharp increase in the loss value was influenced by outlier fraud cases involving foreign currencies, which, when converted to Cedi, ballooned the 2023 attempted fraud value at loss. The PSP sector also recorded a loss of GH¢16 million involving 14,655 cases in 2023.
Although the loss value recorded in 2023 represented a 38% decline compared to the GH¢26 million recorded in the previous year, the incidents showed a 20% increase compared to the 12,166 cases in 2022.
Also, the bank and SDI sectors recorded increases in the loss values as a result of fraud, while the PSPs sector saw some decline.
The report added that the BoG will continue to engage institutions with high incidences of fraud to develop action plans to address such incidences in the industry.
“The publication of the annual Fraud Report by the BoG seeks to create awareness of fraud occurrences and trends identified within the reporting year with the view to promote the soundness and integrity of the banking system.”
The report has also highlighted some directives by BOG to banks, SDIs, and PSPs that, if implemented, will help reduce the incidence of fraud in the sector.
By: Rainbowradioonline.com/Ghana