The Ministry of Finance says the rising tide of fraud is negatively impacting the banking sector.

Reported cases of banking sector fraud reached GH?88 million in 2023—marking a concerning 7% increase from GH?82 million in 2022.

Speaking at Ghana’s third mutual assessment under the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), Andrew Kudjo Ameckson, Acting Director of the Financial Sector Division at the Ministry of Finance, said there is an urgent need for intervention.

“In 2023, there were 15,865 reported fraud cases in the banking sector, up from 15,164 in 2022. The amount involved has grown from GH?82 million to GH?88 million, underscoring a worrying trend,” Ameckson told Citi Business News.

“A 7% rise is not insignificant. This is someone’s deposit, someone’s capital wiped out by fraudsters. Even a single loss of a million cedis could mean financial ruin for an individual or business.”

The Finance Ministry has pledged to strengthen its collaboration with key enforcement agencies, including the Financial Intelligence Centre (FIC) and the Economic and Organised Crime Office (EOCO), to curb the menace.

While the Ministry itself focuses on policy formulation and implementation, Ameckson assured that it would provide the necessary support to these institutions to intensify their crackdown on fraudulent activities.

The surge in banking fraud poses a significant threat to investor confidence and financial stability in Ghana.

As financial crimes become increasingly sophisticated, stakeholders are being urged to enhance regulatory oversight, bolster cybersecurity measures and strengthen risk management frameworks to protect depositors and maintain trust in the banking sector.