BoG directs banks and SDIs to enhance staff training to combat rising fraud cases
Bank of Ghana (BoG) has issued a directive to banks and Specialized Deposit-Taking Institutions (SDIs) to prioritize continuous training of their staff to effectively identify and combat fraud. This action comes in response to a significant increase in attempted fraud cases in the banking and SDI sectors during the year 2022, with a rise of 27.74% compared to the previous year.
According to the recently published Fraud Report by the Bank of Ghana, a total of 2,998 cases of attempted fraud were recorded in 2022, compared to 2,347 cases in 2021. Despite the higher number of cases, there was a decrease of 7.88% in the total loss value, which stood at approximately GH¢56 million in 2022, compared to GH¢61 million in 2021.
Among the top five fraud typologies that impacted institutions in the sector, forgery and manipulation of documents emerged as the most prominent, resulting in the highest recorded loss value of GH¢33 million. Another rising fraud typology was fraudulent withdrawals, involving unauthorized money withdrawals from customers’ accounts and causing losses totaling GH¢7 million. It is worth noting that many cases in this typology involved the involvement of bank and SDI staff. Cheque fraud also contributed to the loss value, accounting for GH¢5 million, with cloned cheques being a common modus operandi.
In light of these findings, the Bank of Ghana emphasized the need for banks and SDIs to ensure the independence of their internal audit functions. This measure aims to provide independent assurance to the board regarding the effectiveness of risk management, internal controls, and corporate governance structures within the institutions. Additionally, banks and SDIs were directed to strengthen their ethical codes of conduct, emphasizing the importance of a strong tone at the top and strict adherence to ethical values.
By enhancing staff training and promoting a culture of compliance, the Bank of Ghana seeks to equip banks and SDIs with the necessary tools and knowledge to mitigate fraud risks effectively. These measures are crucial for safeguarding the integrity of the financial system and protecting the interests of customers. As the threat of fraud continues to evolve, the proactive stance taken by the Bank of Ghana underscores the commitment to maintaining a secure and trustworthy banking environment.
