The Bank of Ghana (BoG) 2024 Fraud Report reveals that the number of staff involved in fraud at Banks and Specialised Deposit-Taking Institutions (SDIs) increased by 33% from 274 in 2023 to 365 in 2024.
Cash theft was the most common crime perpetrated with 274 staff (75%) implicated in 2024, which is up from 211 (77%) in 2023. In fact, concerns are being raised due to the consistent and steady increase of staff involvement in fraudulent activities within these financial institutions.
In total, 155 staff were dismissed by Banks and SDIs. Of these dismissals, 83 staff (54%) were due to cash theft-related fraud. The report notes that only 155 staff, representing 43% of the 365 staff involved in fraudulent activities, were dismissed.
This suggests that other implicated staff may be exonerated or given lesser punishments. The difficulty in recovering potential losses due to prolonged legal proceedings also leads institutions to stop pursuing cases.
Consequently, BoG has issued directives to Banks and SDIs. These include strengthening internal controls and staff due diligence mechanisms during recruitment, reinforcing continuous in-house training on professional conduct and ensuring the prosecution of culprits to act as a deterrent.
Banks and SDIs are also required to strengthen disciplinary policies and foster a culture of zero tolerance for fraud.
Financial institutions have been urged to urgently implement comprehensive digital monitoring solutions that leverage artificial intelligence to detect unusual employee behaviour patterns in real-time.
Banks should develop comprehensive awareness engagement programmes for clients which will enable them to understand the levels of risk exposure through sharing regular cyber/financial crimes intelligence on potential loopholes that could result in human compromises that lead to fraud.
The central bank’s report highlights a disturbing trend of fraud within the banking system, exacerbated by inadequate internal controls and lack of staff training.
These findings of the Fraud Report underscore an urgent need for reform within Ghana’s banking institutions, lest the damage to public trust become irreparable.
If this situation is not checked, it could erode investor confidence in the banking sector. The central bank has expressed its concern over the “consistent and steady increase” of staff involvement in fraud and urged financial institutions to enhance their recruitment screening and ensure diligent prosecution of offenders.
