Fraud Cases in Banks and SDIs Drop by 18% in 2024, But Value at Risk Rises by 11% to GHS 80 Million
The number of attempted fraud cases reported in the banking and Specialised Deposit-Taking Institutions (SDIs) sectors saw an 18% decline in 2024 compared to the previous year. However, despite the drop in case volumes, the total value at risk linked to these fraudulent activities surged by 11% year-on-year.
This was contained in the 2024 Fraud Report released by the Bank of Ghana (BoG), which covers data reported by Banks, SDIs and Payment Service Providers (PSPs) for the period under review.
Per the report, the value at risk for fraud cases in the banking and SDIs sectors stood at approximately GHS 80 million in 2024, up from GHS 72 million recorded in 2023.
Forgery and Document Manipulation on the Rise
The central bank noted that the total value at risk across all fraud types declined, with the exception of forgery and document manipulation. This particular fraud typology recorded a significant increase – rising more than sevenfold to GHS 53.5 million in 2024, from GHS 7.47 million in 2023. It also accounted for 67% of the total fraud value at risk in the banking and SDIs sectors.
BoG attributed the sharp rise in this category to an outlier case involving an amount of GHS 53 million.
Weak Due Diligence Leads to Surge in Identity Theft
Identity theft also emerged as a major fraud concern in 2024, with the value at risk escalating from GHS 0.6 million to GHS 5.7 million. The central bank blamed the increase on weak verification processes, particularly in relation to financial transactions conducted with the Ghana Card.
Challenges with Recovery
According to the BoG, efforts by banks and SDIs to recover potential losses remain a challenge. The central bank explained that protracted legal processes often discourage financial institutions from pursuing fraud-related cases to their logical conclusions.
Fraud in PSP Sector Also on the Rise
The Payment Service Providers (PSPs) sector reported GHS 19 million in value at risk from 15,673 fraud cases in 2024. This marked an 18% and 7% rise in the value at risk and number of cases respectively, compared to 2023.
Aggregate Figures Across Sub-Sectors
In aggregate terms, the total number of fraud cases recorded across the banking, SDI and PSP sectors increased by 5% to 16,733 cases in 2024, up from 15,865 cases in 2023. Correspondingly, the total value at risk rose by 13% from GHS 88 million in 2023 to GHS 99 million in 2024.
For the banking sector alone, the value at risk jumped by 19%, from GHS 63 million in 2023 to GHS 75 million in 2024.
Need for Vigilance
The Bank of Ghana reiterated the importance of publishing the annual fraud report as part of efforts to promote transparency, foster awareness, and safeguard the integrity of the financial system.
Adding that, the insights from the report are critical in helping institutions identify evolving fraud typologies and improve internal control mechanisms.
