Financial Fraud Types Emerge in Ghana, Leaving Customers Reeling

A recent surge in card fraud schemes has left many customers in Ghana reeling from unauthorized money transfers and subsequent avoidance of necessary charges. The Bank of Ghana (BoG) and regulatory bodies are investigating multiple incidents involving banks and card providers.

How the Fraud Schemes Work

According to insiders, these fraudulent schemes involve groups manipulating unsuspecting individuals into granting access to their cards. Once control is gained, the groups exploit the cards for unauthorized transactions, cleverly sidestepping charges typically associated with such transactions.

Uncovering the Fraudulent Activity

One website, an unauthorized money transfer organization (MTO), has come under scrutiny for operating outside BoG’s regulations. Customers have been found to have utilized their cards on this platform, unaware of the illicit nature of their transactions. These transactions were initially misclassified as large digital goods purchases, masking their true nature as cross-border money transfers that violate card-issuer rules.

Expert Advice

Experts are urging individuals to exercise caution and take necessary precautions to safeguard their cards and personal finances. Consumers have been advised:

• Not to share their card details with anyone
• Verify the authenticity of requests for card access
• Adopt responsible online behavior

Investigation and Action

The Economic and Organised Crime Office has been alerted in compliance with the Economic and Organised Crime Act, 2012, Act 804, due to involvement of Ghana’s hard-earned foreign currency in these unauthorized transfers. The country’s financial institutions are also taking immediate action to report incidents and prevent further fraud.

The Impact on Ghana’s Financial Sector

Ghana is not immune to global trends in digital fraud, which has seen a sharp rise in electronic payments. In 2021, the financial sector witnessed a substantial surge in fraud cases, resulting in a loss of GH¢61million compared to GH¢25million in 2020. The primary contributors to this concerning figure were:

• ATM card/POS fraud
• Impersonation
• Lending and credit fraud
• Forgery and manipulation of documents
• Cash suppression
• E-money fraud

Conclusion

The need for improved customer vigilance and stronger security measures within financial institutions has become more evident than ever to combat these fraudulent activities and mitigate the financial losses associated with them.