Ghana experienced a significant rise in digital fraud, with 16,733 cases reported in 2024. The total value at risk from these incidents climbed to approximately GHS 99 million, according to the Bank of Ghana’s 2024 fraud report. This represents a 13 per cent increase from GHS 88 million in 2023.
Elhanan Owureku Asare, Head of Fintech and Innovation at the Bank of Ghana, warns that technology alone cannot stop digital fraud. Fraudsters increasingly exploit customers through 'social engineering,' where they trick individuals into revealing their Personal Identification Numbers (PINs) and passwords. Financial institutions can invest in strong security systems, but these protections are bypassed when users willingly give away their confidential details.
This surge in fraud occurs amidst Ghana's rapidly expanding digital payment landscape. In 2024, payment service providers processed about 8.1 billion transactions, valued at GHS 3 trillion. This represents a 19 per cent increase in transaction volume from 2023, and a 58 per cent rise in value. This growth underscores the importance of securing digital channels against evolving fraud tactics.
Mr. Asare highlighted the core problem: “We can protect the technology. We can protect it, prevent it from being hacked. Cyberattacks can be prevented.” However, he added, “social engineering – how do you prevent it?” He explained that fraudsters call individuals posing as legitimate entities and persuade them to disclose authentication details like One-Time Passwords (OTPs) and PINs. These details are designed to protect users but are being exploited.
The central bank's fraud report indicates that payment service providers account for most reported incidents. They recorded 15,673 electronic fraud cases in 2024, up from 14,655 in 2023. The value at risk for these providers increased by 18 per cent, from GHS 16 million to GHS 19 million. This suggests that mobile money and other electronic payment platforms are particularly vulnerable to these social engineering attacks.
The Bank of Ghana official indicated that the industry might implement stronger authentication systems, such as four-factor or five-factor authentication, to combat this threat. However, he cautioned that adding more security layers could make digital payments slower. This could negatively affect the customer experience. The challenge lies in finding a balance between robust security and convenient transactions for users.
This warning from the Bank of Ghana comes ahead of the maiden Digital Economy Forum. The forum, themed “The Trust Crisis: Why Fraud Is Holding Back Ghana’s Digital Economy,” aims to bring together regulators, banks, fintech companies, and consumers. It will examine whether existing regulatory systems are adequate to cope with the rapid growth of digital finance and the accompanying fraud challenges. Key stakeholders will need to collaborate to devise comprehensive strategies that protect consumers without hindering the progress of Ghana’s digital economy.
The shift from physical cash to electronic payments has changed the nature of financial crime. Mr. Asare noted that as processes become digital, the scale and reach of fraudulent activities increase significantly. Protecting the digital realm is crucial for maintaining public trust and ensuring the continued growth of Ghana's digital economy.