Ghana’s banking sector is facing intensifying scrutiny on the international stage as fraudulent activity continues to surge, with 155 employees dismissed in 2024 for their involvement in financial crime, according to the Bank of Ghana’s (BoG) latest Fraud Report.

The report reveals a troubling rise in the scale and complexity of fraud in both banks and Special Deposit-Taking Institutions (SDIs), with 365 staff members implicated in various fraudulent acts during the year. Of these, 155 lost their jobs.

The number of reported fraud incidents increased by 5% year-on-year, from 15,865 cases in 2023 to 16,733 in 2024. The estimated financial exposure associated with these cases rose more sharply - by 13% - from GHS88mn ($6.6mn) to GHS99mn ($7.5mn), reflecting the growing economic risk to the sector.

The BoG highlighted a lack of urgency and effectiveness in legal responses, noting: “The lengthy nature of court cases often discourages institutions from pursuing them, resulting in fewer successful recoveries.” It added: “This is an indication that other staff implicated in fraud activities are either exonerated or given lesser punishments.”

To stem the tide, the central bank called on financial institutions to adopt a zero-tolerance policy on fraud and reinforce internal disciplinary procedures.

Encouragingly, the total number of distinct fraud cases reported fell by 26%, from 969 in 2023 to 716 in 2024. The BoG attributed this decline to stronger internal controls introduced across the financial services sector.

Despite this drop, the risk landscape remains volatile, with increasingly sophisticated and widespread methods of deception. The most prevalent forms of fraud in 2024 - by value at risk - were:

Forgery and document manipulation
Identity theft and impersonation
ATM/POS/Card fraud
E-money fraud
Remittance-related fraud

Cash theft has also become a growing problem for microfinance institutions and savings and loans companies, prompting the BoG to advocate for tighter internal monitoring systems.

The central bank also expressed concern over the expanding role of financial institution employees in perpetrating these schemes. It urged banks to conduct stricter background checks during recruitment and to offer ongoing ethics training to staff.

“Banks and SDIs should also ensure the prosecution of culprits to serve as a deterrent,” the BoG stated.

Electronic fraud remains a major area of concern, with cases increasing by 7%, from 14,655 in 2023 to 15,673 in 2024. This persistent rise indicates that cybercriminals continue to find and exploit vulnerabilities in Ghana’s digital payment infrastructure, despite enhanced cybersecurity measures.