By Isaac FRIMPONG (Ph.D.)
Fraud in financial institutions remains a persistent challenge in Ghana, despite regular audits, technological improvements, and discussions among stakeholders. The Bank of Ghana’s 2023 fraud report reveals alarming trends.
For instance, fraud cases increased by 5 percent from 15,164 in 2022 to 15,865 in 2023, with the corresponding total loss value rising from GH₵82 million to approximately GH₵88 million—a 7 percent increase.
Alarmingly, a significant number of these cases involved bank staff, both permanent and temporary. This article argues that beyond technology and regulation, integrating Ghanaian social and cultural values into organisational ethics offers a complementary and sustainable strategy for fraud mitigation.
Understanding the roots of fraud
The involvement of bank staff in fraud increased from 188 in 2022 to 274 in 2023, with cash suppression and theft being the most common offences. While financial institutions have developed numerous technical solutions, the reoccurrence of fraud indicates that these measures alone are insufficient.
Fraud is not merely a financial issue but a social one, influenced by the interplay of organisational culture, ethical standards, and individual behaviour. Kwame Gyekye defines ethics as the “study of morality, including social rules, principles, and norms that guide human behaviour.” In traditional Ghanaian society, ethical conduct is deeply embedded in daily life, reinforced by communal practices, religious beliefs, and cultural norms. Dishonesty and theft are not only frowned upon but also attract severe social consequences such as marginalisation, exclusion, or loss of status (destoolment).
However, colonisation, modernisation, and economic pressures have eroded some of these values, creating a disconnect between personal morality and professional conduct. This gap begs the question: how did organisation ethics decline, and how can Ghanaian values be reintegrated to create an ethical banking sector?
Empirical lessons from community-based systems
Historically, Ghana’s family- and community-based systems have proven resilient in promoting trust, reciprocity, shared responsibility, and social cohesion. These systems underline practices such as Susu, a traditional savings scheme, thrives on trust and mutual accountability.
Attempts by financial institutions to replicate such models often face challenges when they overlook these underlying cultural elements. Without fostering these traits—trust and accountability—banking systems risk becoming susceptible to unethical practices. By learning from community-based approaches, financial institutions can cultivate stronger ethical foundations.
The way forward
Technological advancements, including blockchain, artificial intelligence, and advanced fraud detection systems, offer promising tools for preventing fraud.
However, these solutions are only as effective as the people and systems that deploy them. To maximise their impact, these technologies must be complemented by culturally relevant ethical frameworks that support accountability and trust.
Rewarding ethical behaviour: Financial institutions can establish reward systems that celebrate ethical conduct, reinforcing desirable behaviours among staff.
Culturally relevant ethics training: Regular training that integrates Ghanaian values—such as trust, honesty, and communal responsibility—can bridge the gap between personal morality and professional conduct.
Adopting the economy of affection: Hyden’s “economy of affection” emphasises relationships and shared responsibilities over individual gain. Translating this into organisational culture means creating environments where employees feel valued, supported, and connected. Referring to employees as “partners,” as done by the John Lewis Partnership in the UK, can foster a sense of ownership and accountability.
Internal welfare programmes: Initiatives like staff support funds or mentorship schemes can strengthen bonds and reduce motivations for fraudulent behaviour. Creating safe spaces for employees to voice concerns without fear of retribution promotes trust and transparency.
Community engagement models: Rural banks, which maintain strong community ties, often report lower fraud levels due to increased social accountability. Documenting and scaling such practices can provide actionable insights for larger financial institutions.
Conclusion
Fraud prevention in Ghana’s financial sector requires more than regulatory oversight and technological solutions. By integrating Ghanaian social values and ethical principles into the workplace, financial institutions can build a culture of trust, accountability, and shared responsibility. Drawing on historical models, such as the Susu system, and theoretical frameworks such as the economy of affection, provides practical pathways to ethical banking.
Embracing cultural principles is not only a moral obligation but also a practical strategy for sustainable fraud mitigation. Financial institutions that align cultural values with technological innovation will strengthen trust, enhance employee well-being, and position themselves for long-term success.
Isaac is a Researcher and Consultant
