BoG establishes Financial Industry Security Operating Centre to reduce cyber fraud

Bank of Ghana is seeking to significantly reduce Automatic Teller Machine (ATM) and cyber-related fraud with the setting up of a Financial Industry Security Operating Centre, to ensure a safer cyberspace for the banking sector in Ghana.

The assurance follows a rise in the number and value of ATM fraud cases and other types of fraud, as captured in the 2020 banking industry fraud report.

Just recently, a 42-year-old man was found to be in possession of 656 ATM cards connected to nine banks operating in Ghana and Nigeria.

“This is a developing matter, we are investigating it. As you know, the financial services are becoming technology-driven financial services, the risk associated with ATMs will also go up. Fortunately, we are looking very closely at that.”

“We have the security operating centre at the Bank of Ghana, which monitors our cyber resilience. Currently, we are in the midst of establishing a Financial Industries Hub.”

“I believe the Bank of Ghana is ready, the Agriculture Development Bank is getting connected. Hopefully, by a year from now, we will have all 23 banks connected to the industries hub, and we will be able to monitor the cyber risk associated with the entire banking system in Ghana.”

The reported value of fraud recorded by Banks and Specialized Deposit-Taking Institutions in Ghana in 2020 was about GH¢1 billion.

This represents an increase of over 750 percent when compared to the reported value of fraud recorded in 2019, which stood at about GH¢115 million. That’s according to the Bank of Ghana’s Banks & SDI Fraud Report for the year 2020.

Per the report, a total count of 2,670 cases of banking fraud were recorded in 2020, as compared to 2,311 reported cases in 2019.

Some of the leading fraud types in the sector for last year were ATM and POS fraud, fraudulent withdrawals, as well as E-money fraud.

Losses from ATM/POS fraud accounted for 32.2 per cent of the total fraud in the sector, recording the highest loss value of GH¢8.19 million in 2020, up from the GH¢1.26 million recorded in 2019, representing a 548.1 per cent increase.

According to the report, the outbreak of the COVID-19 pandemic forced bank customers to use alternative channels for payments and bank services.

But poor personal safety perception and inadequate customer sensitization by banking institutions caused an upsurge in fraud perpetrated through ATM/POS.

The losses incurred as a result of fraud for 2020 stands at GH¢25.40 million, as compared to an estimated loss of GH¢33.44 million in 2019, representing a 24.0 per cent decrease.

Addressing to issue to the media, Governor of the Bank of Ghana, Dr. Ernest Addison said the Central Bank is working to establish a Financial Industry Security Operating Centre to curb the situation.

Source: Citibusinessnews