PSPs record GH¢16m loss in 2023 amid rising fraud incidents

Payment Service Providers (PSPs) recorded a total loss of GH¢16 million in 2023, resulting from 14,655 reported fraud cases. Although this loss represents a 38% decline compared to the GH¢26 million recorded in 2022, the number of incidents increased by 20%, rising from 12,166 cases in 2022 to 14,655 in 2023.

Increase in fraud cases despite lower losses

The rise in electronic fraud cases, primarily involving social engineering methods employed by fraudsters, has been a growing concern.

In 2023, the 14,655 reported incidents marked a significant jump from the previous year.

Despite this increase, the total monetary loss was notably lower—GH¢16 million, compared to GH¢26 million in 2022.

This reflects a 38% decline in the overall value of losses.

December: Peak fraud activity

December 2023 saw the highest loss value for the year, likely due to the surge in economic activities during the festive season, which often provides fraudsters with more opportunities to execute their schemes.

Need for heightened awareness and security measures

The increasing frequency of fraud incidents has prompted stakeholders to recognize the need for enhanced awareness through sensitization programs, strengthened security measures, and proactive initiatives.

These efforts are crucial in dealing with fraud, particularly during high-risk periods like the festive season.

E-money usage across various networks and channels has made financial services more accessible for millions of Ghanaians and ultimately fostered financial inclusion.

Customers of e-money platforms perform a wide range of services including payments of insurance, investments, and remittances, among others.

By end of the year 2023, electronic customer accounts had reached 65.6 million with 22.8 million being active users.

In terms of the volume of transactions, the year 2023 recorded 6.8 billion with a corresponding transaction value of GH¢1.9 trillion.

The year 2022 however recorded a value of GH¢1 trillion in e-money transactions with the volume of transactions standing at five  billion.

This indicates a 90% increase in value of e-money transactions and an increase of 36% in volume of e-money transactions  from 2022 to 2023.