Financial Crime World

Here is the converted article in markdown format:

CASH REVERSAL: A GROWING CONCERN IN GHANA’S MOBILE MONEY SPACE

A growing trend of cash reversal has been detected in Ghana’s mobile money space, where fraudsters are defrauding unsuspecting victims by sending fake mobile money credit notifications and convincing them to send the credited amount back.

The Problem

According to figures released by the Bank of Ghana, a total of GH¢27 million was lost to fraudulent activities in 2022, with PSPs reporting 12,166 cases of mobile money fraud. This represents an increase of 117% compared to 2021’s loss value of GH¢12 million.

The Fraudsters’ Modus Operandi

The fraudsters’ modus operandi involves sending fake credit notifications to the victim’s phone, convincing them that they have been mistakenly credited with a certain amount. The victims, without verifying their account balances, send the credited amount back to the fraudster, only to realize later that no money was actually credited to their accounts.

The Bank of Ghana’s Response

The Bank of Ghana has urged stakeholders to develop adequate fraud mitigation tools to curb this growing menace. In its notice, the Bank emphasized the need for users to periodically change their PINs and be cautious when sharing their phones or account information with others.

To combat cash reversal and other fraudulent activities, the Bank of Ghana has initiated several measures:

  • Intensifying sensitization programs through television and radio shows
  • Engaging law enforcement agencies to deal with fraudsters through the Committee for Cooperation between Law Enforcement Agencies and the Banking Committee (COCLAB)
  • Directing banks and SDIs to immediately communicate fraud incidents to their customers

Key Statistics

  • 2022 recorded a value of GH¢1 trillion e-money transactions and a volume of 5 billion.
  • PSPs reported a total loss value of GH¢27 million in 2022, with some recoveries reducing the actual loss to approximately GH¢26 million.
  • Mobile money fraud registered 12,166 cases in 2022, compared to 12,350 cases recorded in 2021, indicating a marginal decrease.

Initiatives by the Bank of Ghana

  • Intensifying sensitization programs through television and radio shows to educate the public on financial matters and their rights and responsibilities.
  • Engaging law enforcement agencies to deal with fraudsters through COCLAB.

Conclusion

The need for awareness and education cannot be overstated in this regard. With the increasing usage of mobile money among Ghanaians, it is essential that stakeholders prioritize fraud mitigation measures to protect vulnerable users, particularly the aged and uneducated.