The Bank of Ghana has reported a surge in SIM swap fraud, which has increasingly targeted users of mobile banking services. In 2023, this scheme led to losses of about GH¢4.6 million, with 15 cases documented by the central bank.
This scam preys on people who use mobile banking, such as banking apps, WhatsApp banking, or accounts linked to their phone numbers. Criminals deceive telecom companies into transferring the victim’s phone number to a SIM card under their control, often assisted by telecom insiders.
With the phone number in hand, fraudsters can intercept calls and messages, gain access to banking apps and mobile money accounts, and bypass security protocols to carry out fraudulent transactions.
Even during cheque processing, fraudsters can manipulate mobile phone verifications.
The risk isn’t limited to individuals, as corporate entities can also fall victim, potentially losing large amounts of money.
Certified Fraud Examiner and Financial Crime & Fraud Lecturer at the National Banking College, Ransford Nana Addo Junior, warns “It is not only individual accounts. When a SIM swap happens on corporate accounts, it’s more dangerous. For instance, if the CFO of a hotel has his number swapped and a fraudulent transaction is initiated, the fraudsters will be the ones receiving the confirmation.”
He also noted that SIM swap fraud extends beyond banking:
“It goes beyond just the mobile channels and even beyond banking. For instance, if somebody wants to intercept your medication information sent through SMS or your SSNIT records, it can be intercepted through SIM swap as well.”
To safeguard yourself, exercise caution when sharing personal details and frequently check your accounts for any unusual activity. If you suspect fraudulent behavior, take immediate action by reaching out to your service provider and bank to secure your accounts and limit potential harm.
Regarding payment service providers, the Bank of Ghana has mandated adherence to section 34(3)(a) and (b) of the Payment Systems and Services Act 2019 (Act 987). This regulation stipulates that a customer’s electronic money account must be deactivated for two days following a SIM swap or replacement. The account can be reinstated once the customer provides valid identification, thereby reducing the risk of SIM swap fraud.
The report revealed a 5% increase in the total number of fraud cases reported, resulting in losses of GHS 88 million in 2023.