Ghana Association of Banks offers 7 proposals to tackle fraud in the financial industry

The Ghana Association of Banks (GAB) has rolled out a set of measures to bolster the banking sector’s defenses against increasingly complex fraud schemes.

This move follows the Bank of Ghana’s (BoG) recently published Fraud Report, which reviewed fraud trends from 2019 to 2023 and highlighted critical areas that need immediate attention.

Central to GAB’s recommendations is the adoption of cutting-edge technologies, including artificial intelligence (AI) and machine learning, to enhance fraud detection.

These systems can process massive datasets in real-time, spotting suspicious behavior and blocking fraudulent activities before they occur.

GAB is also pushing for the introduction of a “zero-trust” security framework. This model ensures continuous verification of users and devices, reducing the risk of insider threats by removing automatic trust from within the system.

Another key proposal is the use of blockchain technology, which can securely track and verify transactions, preventing document forgery and boosting transparency in the financial sector.

In addition to technological upgrades, GAB highlights the need for more rigorous staff vetting processes and the promotion of an ethical culture through training programs. Encouraging whistleblowing is also advised, as it empowers employees to report any suspicious behavior without fear of retaliation.

The GAB also places strong emphasis on customer education to combat digital fraud. As mobile and online banking use rises, educating customers on cybersecurity best practices is crucial for their protection against cyber threats.

Moreover, the Association stresses the importance of supporting employees’ well-being, recognizing that financial hardships among staff can sometimes lead to fraud.

By fostering a supportive and fair workplace, banks can help reduce the likelihood of fraud driven by personal financial strain.

These initiatives aim to strengthen the banking industry’s fraud prevention efforts, aligning with the BoG’s broader goal of a more secure and resilient financial system.