Bank fraud drops 26% in 2024 due to stronger controls

The banking sector in Ghana has experienced a notable 26 per cent decline in fraud cases in 2024, according to a new report from the Bank of Ghana.

The report said fraud incidents dropped from 969 cases in 2023 to 716 in 2024.

It attributed the trend to the strengthening of internal control mechanisms within banking institutions, which have played a crucial role in mitigating fraudulent activities.

However, despite the overall decline, certain fraud typologies have surged.

Automated Teller Machines (ATM), Point of Sale (POS) and Card fraud recorded an 80 percent increase, rising from 218 cases in 2023 to 415 in 2024.

Remittance fraud also doubled from five reported cases to ten within the same period.

The report linked the rise in ATM/POS/Card fraud and remittance scams to the growing adoption of digital financial products aimed at promoting financial inclusion.

However, it suggested that some customers' limited understanding of the digital financial landscape could make them more vulnerable to these fraud types.

To address these challenges, the report stressed the need for banks to enhance security features on electronic payment channels and intensify public sensitisation campaigns.

It also noted a significant reduction in other fraud typologies.

Cash suppression, for instance, saw a dramatic 77 per cent decline, with cases falling from 87 in 2023 to 20 in 2024.

The report emphasised that the substantial decline highlights the effectiveness of enhanced internal control measures in combating specific types of fraud.

It urged banks to stay vigilant and continuously strengthen their control mechanisms to further reduce fraudulent activities in the sector.

GNA