Cash Theft and Mobile Money Fraud on the Rise in Ghana’s Banking Sector
Cash Theft Continues to be a Concern
The Bank of Ghana has released a notice highlighting the increasing trend of cash theft and mobile money fraud in the country’s banking sector. According to the notice, cash theft, also known as cash suppression, continues to be a major concern, with losses amounting to GH¢3.9 million in 2022.
Rural and Community Banking Sector Most Affected
The majority of these cases have been reported in the rural and community banking sector, with most incidents involving small-scale transactions. Despite a decrease in loss value, the number of cash theft incidents increased in 2022.
Mobile Money Fraud on the Rise
In addition to cash theft, mobile money fraud has also become a significant issue, with payment service providers (PSPs) reporting 12,166 cases of mobile money-related fraud in 2022. The two main types of mobile money fraud reported were:
- Wrong Transfers: Occurs when a victim inadvertently sends money to the wrong mobile wallet.
- Cash Reversals: Involves fraudsters convincing victims to refund transactions that have not been made.
Growth of E-Money Transactions
The notice also highlights the growing use of e-money among Ghanaians, with 5 billion e-money transactions recorded in 2022. However, this growth has led to an increase in fraud cases, with a loss value of GH¢27 million reported by PSPs in 2022.
Measures to Address Fraud
To address these issues, the Bank of Ghana is:
- Intensifying sensitization programs to educate the public on financial matters and their rights and responsibilities.
- Working with law enforcement agencies to prosecute individuals involved in fraud.
- Directing banks to immediately communicate fraud incidents to the Bank of Ghana and put in place stringent measures to mitigate the impact of fraudulent activities.
Call for Adequate Fraud Mitigation Tools
The notice emphasizes the need for stakeholders to develop adequate fraud mitigation tools to curb these growing concerns.