Bank Of Ghana Directs Banks To Report Fraud Cases To Them

Bank of Ghana has explained that the evolving global financial landscape and the growing utilisation of digital platforms have increased risks in the banking sector and as such put combating financial fraud in focus. According to the central bank, fraudsters are continuously developing sophisticated techniques and exploring vulnerabilities in the financial system to take advantage of unsuspecting customers, necessitating a proactive and comprehensive approach to combating fraud in the banking system.

The BoG said that as part of its role in regulating and supervising the banking and payment systems, it assesses fraud typologies and trends across banks, Savings and Deposit Taking Institutions (SDIs) and Payment Service Providers (PSPs). To execute this role, the BoG said it collects data on attempted and successful fraud incidents in accountable institutions and publishes the annual fraud reports.

“It is therefore mandatory for all banks, SDIs and PSPs to report fraud cases to the BoG as and when it happen and submit a monthly ‘Nil return’ when no fraud is recorded. These reports provide an insight on fraudsters’ modus operandi, fraud typologies and trends while highlighting measures to mitigate fraud activities,” the BoG said in a report.

It added that “The negative impact of fraud in the banking sector is not limited to financial losses but also the significant reputational risks posed to financial institutions and loss of public trust in the banking sector. This reinforces the need for financial institutions to enhance internal controls, employee training and customer financial literacy schemes. The BOG remains committed to enhancing collaboration, engaging stakeholders and implementing regulatory measures to mitigate risks associated with fraud and fraudulent activities to safeguard financial stability in Ghana.”

The report by the Bank of Ghana revealed that in 2024, banks reported a total count of 716 fraud cases. This indicates a 26% drop from the count of 969 cases in 2023. According to the report, this downward trend in fraud cases can be attributed to the improvement of internal controls within the banking sector.