Banks urged to step-up security measures to minimise fraud

The Bank of Ghana has ordered banks to reduce fraud. They must strengthen dual-control mechanisms. Mandatory staff rotations are required for sensitive roles.

The Bank of Ghana’s 2024 Fraud Report shows some key findings. Fraud incidents dropped by 18% from last year. However, the total value at risk increased by 11%. It rose from GH¢72 million in 2023 to GH¢80 million in 2024.

The report includes data from Payment Service Providers (PSPs). It highlights a surge in forgery and document manipulation. This type of fraud is now the most severe form. It accounted for 67% of the total value at risk for banks and specialized deposit-taking institutions (SDIs) in 2024. Losses jumped from GH¢7.47 million in 2023 to GH¢53.5 million this year.

This increase was mainly due to one major incident involving GH¢53 million. Identity theft losses also rose sharply, going from GH¢0.6 million in 2023 to GH¢5.7 million in 2024. This spike was linked to poor due diligence during transactions with the Ghana Card.

Recovering losses from fraud remains a big challenge for financial institutions. Lengthy legal processes often discourage banks from seeking restitution. In the PSP sector, the total value at risk reached GH¢19 million in 2024, with 15,673 reported cases.

This marks an 18% increase in case value and a 7% rise in incidents compared to last year. The Bank of Ghana recommends that all banks implement compulsory staff rotations for critical roles. They also emphasize fostering a culture of security awareness through regular events and discussions.