GH¢72m stolen from customers’ accounts at banks, SDIs

While the number of attempted fraud cases in the banking and Specialized Deposit-taking Institutions (SDI) sectors declined sharply by 59% in 2023 compared to 2022, the total loss value from these fraud cases stood at approximately GH¢72 million.

This represents a 29% increase over the GH¢56 million recorded in 2022.

The rise in losses was largely driven by outlier fraud cases involving foreign currencies, which, when converted to Cedis, significantly inflated the 2023 fraud loss value.

The number of staff involved in fraudulent activities in Banks and SDIs rose from 188 in 2022 to 274 in 2023, representing an increase of 46%.

Out of the 274 cases of fraud recorded involving staff in 2023, 211 (77%) were involved in cash theft (cash suppression), as compared to 140 (66%) staff involved in 2022.

Cash theft and foreign currency fraud

Fraud losses in the banking sector rose by 21%, with a total loss value of GH¢63 million in 2023 compared to GH¢52 million in 2022.

Cash theft, particularly “cash suppression” fraud, recorded the highest loss in 2023, soaring to GH¢14.8 million—14 times the GH¢1 million recorded in 2022.

This surge was mainly due to large-scale thefts in universal banks, including a notable cash theft of $466,000.

Foreign currency fraud also contributed significantly to the increased losses, with total fraud losses in foreign currencies reaching $1.7 million and £0.048 million in 2023.

The combined effect of foreign exchange movements and theft in foreign currencies had a substantial impact on total loss values.

Cyber and document fraud still prominent

Cyber/email fraud ranked second in terms of fraud loss, with a recorded value of GH¢10.5 million, followed by fraudulent withdrawals from accounts at GH¢8.4 million.

Forgery and document manipulation saw a steep decline, with losses dropping by 78%, from GH¢32 million in 2022 to GH¢6.9 million in 2023. Cheque fraud was the fifth-largest category, with losses amounting to GH¢6.1 million.

Increase in fraud cases overall

The total count of fraud cases across the banking and SDI sectors increased by 5%, from 15,164 cases in 2022 to 15,865 in 2023.

These cases corresponded to a total loss value of GH¢88 million in 2023, compared to GH¢82 million in 2022—an increase of about 7%.

SDI records decline in fraud cases but higher losses

The SDI sector recorded a notable 87% reduction in fraud cases, dropping from 1,835 cases in 2022 to just 241 in 2023.

Despite this reduction, the total loss value in the SDI sector surged by 98%, rising from GH¢4.4 million in 2022 to GH¢8.7 million in 2023.

Fraudulent withdrawals from customers’ accounts were the top source of losses in the SDI sector, accounting for GH¢4.6 million in losses—a sharp rise from GH¢0.17 million in 2022.

Cash theft, while still significant, saw a 32% decrease, with losses falling from GH¢2.8 million in 2022 to GH¢1.9 million in 2023.

E-money fraud also emerged as a top fraud category, with losses almost doubling to GH¢1.4 million, compared to GH¢800,000 in 2022.

BoG’s efforts yield positive results in RCBs

Cash suppression fraud, particularly prevalent in the Rural and Community Banks (RCBs) sub-sector, saw a 90% decrease in cases, dropping from 1,597 in 2022 to just 156 in 2023.

This reduction is attributed to the Bank of Ghana’s (BoG) extensive engagement with the boards and management teams of RCBs, urging them to implement measures to curb cash suppression fraud.

The BoG’s efforts have proven effective in mitigating these types of fraud cases within the sub-sector.