Many victims of digital financial fraud unknowingly compromise their own security by sharing sensitive information such as Personal Identification Numbers (PINs) and One-Time Passwords (OTPs) over the phone — a practice fueling the growing menace of social engineering scams that continue to affect Ghana’s mobile money industry.
Officials of MobileMoney LTD (MML) — a subsidiary of MTN Ghana — say this human vulnerability remains one of the biggest challenges in combating fraud, despite heavy investments in technology and customer education.
According to Godwin Kwami Tamakloe, Chief Regulatory, Risk, and Compliance Officer at MML, fraudsters often exploit emotions and trust through social engineering tactics.
“They walk you through a process and convince you to enter your PIN. Some even share their OTPs, making it easy for fraudsters to access their accounts,” he said during a media interaction in Accra.
He noted that many scams are not random but carefully planned by well-organised criminal groups.
“These criminal groups can easily generate phone numbers in Excel. One set verifies the names by attempting to send money, and another team makes the calls,” he explained.
“Before a scam call is made, victims may have been profiled for several days.”
Victims are often shocked by how fraudsters know their names, but Tamakloe said this stems from how mobile money transactions are designed.
“When you send money, the recipient’s name appears on your phone so you can confirm before entering your PIN. Criminals exploit this feature to build databases of potential victims,” he added.
Protecting the float in the ecosystem
Tamakloe revealed that billions of cedis circulate on the entire mobile money platforms at any given time — underscoring the magnitude of the security challenge.
“If someone were to hack that system and take money away, some banks could actually collapse. Protecting that ecosystem is a massive responsibility,” he emphasised.
He said MML continues to invest heavily in strengthening its technological infrastructure and risk management systems. However, technology alone cannot eliminate fraud because the human factor remains unpredictable.
“Our CEO has emphasised transitioning customers from USSD to app-based services to enhance customer experience and not to the detriment of financial exclusion, but literacy remains a challenge. Many have smartphones but use them only for calls or WhatsApp. They don’t fully understand how to secure their mobile money apps,” he noted.
Fraudsters exploit this knowledge gap by posing as MTN agents or relatives sending money from abroad. In a typical scam, a fraudster attempts to register a victim’s number on the mobile money app, triggering an OTP.
The victim then receives a call and, unaware of its purpose, is convinced to share the OTP — effectively giving away control of their wallet.
Strengthening biometric and device security
To counter these threats, MML has overhauled its biometric security systems to prevent criminals from linking victims’ accounts to unauthorised devices.
“We’ve introduced device binding, which ties a customer’s wallet to one primary device. Any attempt to log in from another device must go through official verification,” Tamakloe said.
He added that biometric logins have been reinstated with enhanced safeguards, including a secondary OTP or transaction PIN for transfers between wallets and bank accounts.
“This ensures that even if a fraudster gains access, there’s another layer of verification tied to the rightful SIM owner,” he explained.
Balancing security and convenience
While some customers complain about additional security steps, MML insists they are necessary.
“We know many customers prefer a seamless experience,” Tamakloe acknowledged.
“However, we must balance convenience with protection. The extra layers might seem unnecessary, but they safeguard those new to digital finance.”
Collaboration with Police, EOCO, and banks
MML maintains strong partnerships with law enforcement and financial institutions to bolster anti-fraud efforts.
The company works closely with the Ghana Police Service’s Cybercrime Unit, offering annual training for recruits on how to interpret digital evidence.
In 2023, MML signed a Memorandum of Understanding (MoU) with the Economic and Organised Crime Office (EOCO) to enhance joint investigations.
“So far, four major arrests have led to prosecution, and five more suspects are currently on bail,” Tamakloe disclosed.
“Some of those arrested operated printing businesses that produced fake certificates for fraudulent transactions.”
A shared industry challenge
Tamakloe stressed that digital fraud is not limited to mobile money platforms.
“We have over 17 million active customers transacting daily. When one person is defrauded and posts it online, it spreads quickly. But the truth is that banks, fintechs, and other service providers face the same risks,” he said.
MML is working with the Ghana Association of Bankers to coordinate public awareness campaigns and share intelligence.
“We cannot fight this in silos. Fraud is an ecosystem problem, and we must work together to solve it,” he added.
Ghana Card integration and identification gaps
On the integration of SIM registration with the Ghana Card, MML officials said the initiative improves traceability after fraud occurs but does little to prevent it beforehand.
“It tells us who committed the act, but it doesn’t stop someone from initiating it,” Tamakloe said.
He called for tighter linkages between SIM cards and national IDs to ensure greater accountability.
“That’s a critical step toward confirming that the person we pick up is indeed the right one,” he said, noting that the Ministry of Communications has pledged to collaborate with industry players on this issue.
Building trust in a digital future
Tamakloe reaffirmed MML’s commitment to maintaining public trust — the foundation of its business.
“We handle billions of cedis in transactions daily and cannot afford to compromise the security of the system. That’s why we continue to invest millions in technology, education, and partnerships — to protect our customers and safeguard Ghana’s digital financial future,” he said.
Despite ongoing challenges, MML’s focus on innovation, regulatory collaboration, and customer education positions it as a key player in Ghana’s transition toward a cash-lite, credit-driven economy.
