Financial fraud hits GHS88 million in 2023

Financial fraud hits GHS88 million in 2023 according to the latest annual fraud report from the Bank of Ghana indicates that in 2023, regulated financial institutions in the country recorded 15,865 fraud cases and lost GHS88 million in those cases.

This compares to 15,164 case in 2022, reflecting a 5% rise, and a financial loss of GHS82 million, indicating an increase of 7%.

The report is currently aiming to create awareness of ongoing fraud occurrences and trends identified throughout the reporting year; consequently, it promotes the soundness and integrity of the banking system.

The regulated institution covered in the exercises were Banks, Specialized Deposit-Taking Institutions (SDIs) and Payment Service Providers (PSPs).

Out of the total amount lost, the report said banks and SDIs combined, lost up to GHS167 million to fraud, but GHS95 million of that was recovered through the collaborative efforts of stakeholders and the fraud controls measures, reducing the actual loss to GH¢72 million, while PSPs accounted for the remaining GHS16 million.

SIM Swap Fraud

Analysis of the 2023 data showed that fraud heightened in fraudulent withdrawals from victims’ accounts, cyber/email fraud, and cash theft (cash suppression), whereas another area of concern was SIM swap related fraud, where SIM numbers linked to bank accounts were fraudulently taken over and monies subsequently withdrawn from the accounts.

“This form of fraud targets individuals who have banking applications on their mobile phones and have linked their bank accounts to mobile money wallets,” the report said.

Per the report, SIM swap related fraud accounted for some GHS4.633 million in 2023 alone, having recorded zero for the three years prior.

Indeed, last year, Techfocus24 reported at least three cases of SIM Swap fraud in which three customers of Ecobank and MTN in particular lost GHS250,000 in one case, GHS4,000 plus US$8,000 in another case and GHS32,000 in another.