The Bank of Ghana (BoG) has disclosed a troubling 33% rise in staff-related fraud across the country’s banking and specialised deposit-taking institutions (SDIs) in 2024, signalling persistent internal control failures within the financial sector.

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In its latest annual fraud report, the central bank revealed that 365 employees were implicated in financial misconduct last year, a notable increase from the 274 cases recorded in 2023.

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The uptick, the report suggests, stems largely from ongoing oversight lapses and weak internal systems within regulated financial institutions.

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Cash theft and suppression dominated the landscape of internal fraud, with 274 of the implicated staff directly involved in these activities. These two offences alone accounted for approximately 75% of all internally recorded incidents.

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Yet, despite the scale and seriousness of the misconduct, less than half of the involved employees faced termination. Only 43% were dismissed, with the BoG attributing this in part to the slow pace and complexity of legal proceedings, which often discourage institutions from pursuing full disciplinary measures.

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“The Bank of Ghana expressed concern about the consistent and steady increase in regulated financial institutions’ staff involvement in fraudulent activities,” the report stated.

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The regulator called on banks and SDIs to step up preventive measures by refining recruitment processes and committing to the prosecution of offending staff.

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It further urged banks and SDIs to “tighten recruitment screening processes and ensure the diligent prosecution of offenders.”

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Beyond employee infractions, the report outlines a broader surge in fraud cases across the financial services sector. A total of 16,733 cases were recorded in 2024, marking a 5% year-on-year increase. While traditional banking institutions saw a slight drop in reported incidents, the number of fraud cases rose sharply within SDIs and among Payment Service Providers (PSPs).

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A particular area of concern was the sharp escalation in forgery and document manipulation, with the value at risk ballooning to GH¢53.5 million—up from GH¢6.9 million the previous year. Identity theft also saw an alarming spike, with losses soaring nearly nine times over 2023 levels.

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Despite the scale of the risk, asset recovery efforts fell far short. Out of an estimated GH¢83 million at risk in 2024, only GH¢3 million was successfully reclaimed.

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The central bank concluded the report by stressing the need for a sector-wide shift towards integrity and vigilance.

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The report concludes with a call for the institutionalisation of a “zero tolerance” culture towards internal fraud and urges ongoing collaboration between financial institutions, regulators, and law enforcement to mitigate the growing threat of financial crime.

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