Accra, Ghana//-MobileMoney Fintech LTD (MMFL) and its fellow fintechs, banks, regulators, and cybersecurity agencies are working together to clampdown on digital fraudsters in the country.
According to panellists at the maiden Digital Economy Forum organised by Joy FM, every place in the digital payments system are working together to rid the country off digital fraud.
The panellists- Chief Risk and Compliance Officer of MobileMoney Fintech LTD, Godwin Tamakloe; Deputy Director General In-charge of Technical Operations at Ghana’s Cyber Security Authority, Stephen Cudjoe-Seshie; Hubtel’s Internal Affairs Head, Ebenezer Boffour; Professor Godfred Bokpin, Economist; CEO of Ghana Association of Banks, John Awuah; and Head of Fintech and Innovation Department at the Bank of Ghana, Elhanan Owureku Asare- agreed that digital fraud would only be overpowered if the digital payments players work collectively.
Mr Awuah noted there was a fragmentation in dealing with the digital fraud challenge, but they are now moving towards convergence.
“We as banks do not prioritise profit over security. Even if you do that, the regulator, BoG, will whip you. So, to us, security is paramount beyond profit”.
He added: “Because if you make all the profit this year, one fraud can warp all away the following year. And that is the kind of mindset, in our view, the entire ecosystem must have”.
This is why the banks are spending millions of Ghana cedis on public education just to inform and protect people against digital fraudsters and their cousins.
Mr Tamakloe was quick to add that the fintechs, especially MobileMoney Fintech LTD is also spending a lot on digital fraud education across the country.
When it comes to the context of fraud, he noted that hitherto the banks didn’t do the kind of adverts that they are currently running in the media.
“Don’t share your PIN. Why? Because the fraud typology is no more systems; it has gone beyond systems. It is now with human beings.
So, it is no more about how well you have invested money to protect somebody from intruding- cybersecurity-wise, breaking into your system or some malware attack or whatever. No, it is no more than that. It is rather the attack on the person”, Mr Tamakloe explained.
And these are not people who don’t know anything. If you look at the documentary, the people who were defrauded are people who know what’s up, he told the host of the dialogue, which was aired on Joy News TV and other platforms.
Contributing to the discussion, the Head of Fintech and Innovation Department at the Bank of Ghana, Elhanan Owureku Asare, assured that the Central Bank is working with the entire ecosystem to make sure that digital fraud in its entirety is handled holistically.
“We have different systems in our framework of dealing with digital fraud. We just recently launched our cyber and forensic security guard to help us deal with the frauds”, he stated.
Mr Asare revealed that they are trying to onboard fintechs on our financial intelligence command centre.
The banks are on the centre while the fintechs are not. However, the fintechs are facing the bulk of the digital fraud scourge.
Speaking on the impact of fraud on Ghana’s digital economy, Hubtel’s Internal Affairs Head, Ebenezer Boffour, noted that figures from recent reports indicated that a significant proportion of reported fraud cases are linked to fintechs and PSPs.
“I’ll say we are going upwards. Looking at the report that was released recently by the BoG, when you look at the report, about 97% of the total fraud that happened is coming from fintechs or PSPs,” he said.
According to him, fraudsters often target fintech platforms because they serve as a link between customers and financial institutions, providing a quicker route for accessing funds.
“PSPs are just in the middle of the payment chain. And when it comes to fraud, fraudsters are looking for the point where they can immediately target and quickly move away with the funds”.
Directly attacking bank accounts or mobile money wallets can be more challenging, making payment service providers attractive channels for criminals, Mr Boffour said.
While banks and major telecom operators have over time increased public awareness about fraud prevention, some fintech platforms may not have reached the same level of public visibility in educating customers.
“When you come directly and say that I’m calling from MTN, people have heard about MTN here and there. MTN usually is in the news or is in the media talking about fraud reports”.
“But where is Airtel? Where is Express Pay? Where are the other fintechs to propagate the fraud message?” he asked.
Although fintechs record higher numbers of fraud incidents, the financial impact is more evenly distributed when considering the value of money lost.
“When you look at the amount involved, I’ll say 50-50 because when you’re able to hit one bank account, the amount you get there is higher than what you’ll get when you hit a mobile money wallet,” he said.
Mr Boffour therefore encouraged stakeholders in the digital finance space to intensify customer education and strengthen security measures as Ghana’s digital economy continues to expand.
On his part, Deputy Director General in charge of Technical Operations at Ghana’s Cyber Security Authority, Stephen Cudjoe-Seshie, assured that the agency would continue to collaborate effectively and efficiently with the digital payments companies to wage a strong war against digital fraudsters in the country.
For Economist and Professor of Finance, Professor Godfred Bokpin, the fight against digital fraud is not one that government, banks or financial technology firms can ever claim to have completely won.
He described it as a “continuous battle against increasingly sophisticated criminals”.
