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.

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.

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

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.

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.

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

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

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

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).

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.

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.

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

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.