BoG to set up Financial Industry Security Operating Centre to curb cyber fraud menace
The Central Bank in pursuit for a safer cyberspace for the country’s banking industry is seeking to set up a Financial Industry Security Operating Centre to curb Automatic Teller Machine (ATM) and cyber-related fraud.
The disclosure made by the Governor of the Bank of Ghana (BoG), Dr Ernest Addison, follows the rise in the number and value of ATM fraud cases and other types of fraud as captured in the 2020 banking industry fraud report.
It is also on the back of recent media reports about a 42-year-old fraudster found to be in possession of 656 ATM cards connected to nine banks operating in Ghana and Nigeria.
Commenting on the development, Dr Ernest Addison, said the central bank is still investigating the case but said all 23 banks in the country will by next year be connected to the Financial Industry Security Operating Centre.
“This is a developing matter, we are investigating it. As you know, the financial services are becoming technology-driven financial services, the risk associated with ATMs will also go up. Fortunately, we are looking very closely at that.”
“We have the security operating centre at the Bank of Ghana, which monitors our cyber resilience. Currently, we are in the midst of establishing a Financial Industries Hub.”
“I believe the Bank of Ghana is ready, the Agriculture Development Bank is getting connected. Hopefully, by a year from now, we will have all 23 banks connected to the industries hub, and we will be able to monitor the cyber risk associated with the entire banking system in Ghana,” Dr Addison stated.
The reported value of fraud recorded by Banks and Specialized Deposit-Taking Institutions in Ghana in 2020 was about GH¢1 billion.
This represents an increase of over 750 percent when compared to the reported value of fraud recorded in 2019, which stood at about GH¢115 million.
According to the Bank of Ghana’s Banks & SDI Fraud Report for the year 2020, a total count of 2,670 cases of banking fraud were recorded in 2020, as compared to 2,311 reported cases in 2019.
Some of the leading fraud types in the sector for last year were ATM and POS fraud, fraudulent withdrawals, as well as E-money fraud.
Losses from ATM/POS fraud accounted for 32.2 per cent of the total fraud in the sector, recording the highest loss value of GH¢8.19 million in 2020, up from the GH¢1.26 million recorded in 2019, representing a 548.1 per cent increase.
According to the report, the outbreak of the COVID-19 pandemic forced bank customers to use alternative channels for payments and bank services.
But poor personal safety perception and inadequate customer sensitization by banking institutions caused an upsurge in fraud perpetrated through ATM/POS.
