In 2024, at least 155 employees from banks and specialized deposit-taking institutions (SDIs) were terminated due to their participation in fraudulent activities, as reported in the latest annual fraud report by the Bank of Ghana (BoG). Among these dismissals, 83, which constitutes 54 percent, were specifically associated with cash theft and suppression, the most prevalent type of internal financial misconduct.
The report, encompassing banks, SDIs, and payment service providers (PSPs), highlights a troubling trend of increasing insider threats within the financial sector. The involvement of staff in fraudulent activities surged by 33 percent in 2024, with 365 employees implicated in various offenses, a rise from 274 in the previous year.
The report indicated that cash theft and suppression accounted for 75% of reported internal fraud cases. Furthermore, it pointed out that despite the magnitude of the offenses, only 43% of the involved staff faced dismissal, a situation attributed to lengthy legal processes that deter institutions from fully seeking justice.
The Bank of Ghana expressed significant concern regarding the ongoing and steady rise in staff involvement in fraudulent activities within regulated financial institutions and called for urgent enhancements in internal control systems.
It urged banks and SDIs to strengthen recruitment background checks, enhance professional training, and ensure thorough prosecution of offenders to prevent future violations. Additionally, the BoG’s 2024 report recorded a general increase in fraudulent activities across the financial ecosystem, with a total of 16,733 fraud cases documented last year, an increase from 15,865 in 2023, reflecting a five percent rise.
While instances of fraud in traditional banks saw a slight decline, those in the SDI and PSP sectors experienced significant increases.
The most significant increase was observed in forgery and document manipulation, with the potential loss escalating to GH¢53.5 million — almost eight times the GH¢6.9 million noted in 2023.
This category represented 67 percent of the overall fraud value risk reported by banks and SDIs. The rise was largely attributed to a single major outlier case involving GH¢53 million.
Identity theft experienced a notable increase, with losses rising from GH¢0.6 million in 2023 to GH¢5.7 million in 2024. The report indicated that this surge was due to inadequate due diligence and ineffective verification processes involving Ghana Cards.
Overall, the total value at risk from fraud across banks, SDIs, and PSPs reached approximately GH¢99 million in 2024, marking a 13 percent increase from GH¢88 million in the previous year, with around GH¢75 million attributed solely to banks.
Despite these alarming statistics, only GH¢3 million, or four percent of the total at risk, was recovered. The Bank of Ghana (BoG) recognized that extended legal disputes pose a significant barrier to reclaiming stolen assets and restoring public trust.
The Payment Service Provider (PSP) sector alone reported 15,673 fraud incidents, with a risk value of GH¢19 million, reflecting increases of seven percent and 18 percent, respectively. The BoG emphasized the need for ongoing cooperation between financial institutions and law enforcement to foster a ‘zero-tolerance culture’ towards fraud.
It also committed to continuing the publication of the annual fraud report to enhance transparency and protect the integrity of Ghana’s financial system.
