In recent years, the proliferation of mobile money in Ghana has been accompanied by a significant rise in cyber fraud, particularly through social engineering. With 4.4 million Ghanaians falling victim to such scams in the first quarter of 2025 alone, the issue has reached a critical point. Mobile money is transforming how financial transactions are conducted in Ghana, offering convenience and accessibility. However, the same reasons that make mobile money appealing have also made it a lucrative target for fraudsters. Whether through phishing schemes, malware, or insider threats, cybercriminals are continually developing new methods to breach security measures. This article examines whether better education can help combat this form of fraud.
The Challenge of Social Engineering
Social engineering represents one of the most sophisticated and psychologically manipulative techniques used by fraudsters to acquire confidential information. Michael Kumi Larbi, a cybersecurity consultant, describes this method as leveraging personal information to establish trust with victims. Once trust is established, fraudsters deceive individuals into disclosing sensitive data. This manipulation often goes undetected, making it a highly effective attack method. Victims may be led to believe they are interacting with legitimate entities, such as banks or service providers, and unwittingly share details that compromise their security.
The success of social engineering relies heavily on the compilation of authentic data, including information about victims’ workplaces, family names, or even recent activities. Fraudsters craft convincing scenarios designed to trigger emotional responses. For instance, a victim might receive a message appearing to be from their bank, warning them of suspicious activity and requesting their account details for verification. Such tactics are sensationally effective, primarily because the victim may not realize they have fallen prey to a scam until it’s too late.
Common Techniques Used by Fraudsters
Fraudsters employ various techniques to deceive unsuspecting users, one of the most prevalent being phishing links and malware. These methods typically involve fraudulent emails or messages that appear legitimate, encouraging recipients to click on links or download attachments. These malicious links are often disguised as enticing offers or important announcements, such as fake job offers, invitations to religious gatherings, or advertisements for business opportunities. Once access is granted through these deceitful means, fraudsters can manipulate the victim’s device, sometimes even withdrawing funds without triggering any alerts.
Exploiting the user’s trust and curiosity, these tactics can lead to significant financial losses before victims realize they have been compromised. As a countermeasure, proactive strategies are essential. Larbi suggests simple yet effective measures, such as rebooting phones daily, to disrupt any ongoing malicious activities. This practice can potentially clear temporary files and halt persistent malware from executing its intended functions. Although not foolproof, it serves as a basic yet practical step for users to protect themselves from exploiting their devices.
Accountability: Users vs. Systems
There remains an ongoing debate regarding whether the responsibility for mobile money fraud primarily lies with users or the systems themselves. Telecommunication companies (telcos) frequently attribute incidents to user negligence, specifically citing the unsafe sharing of one-time passwords (OTPs) or personal identification numbers (PINs). Individuals may inadvertently compromise their security by failing to safeguard these critical details. However, Michael Kumi Larbi and Abubakar Issaka, the president of the Cyber Security Experts Association, challenge this perspective, suggesting that telcos also play a significant role.
Larbi points out that telcos sometimes shift the blame to protect their reputations, even when internal breaches occur. Issaka echoes this sentiment, highlighting the notable presence of insider threats. Statistics indicate that more than half of financial fraud cases involve insiders within organizations. This insight underscores the necessity for companies to prioritize rigorous internal audits and fortified security measures, acknowledging that the threat extends beyond external attacks. Both users and systems share in the responsibility for fraud, demanding concerted efforts on both fronts to address vulnerabilities effectively.
The Perspective of MTN Ghana
As the dominant player in the market, MTN Ghana has been scrutinized for its role in mobile money fraud incidents. This scrutiny is especially pronounced due to the historical vulnerabilities identified in MTN’s system architecture, highlighted by cybersecurity experts like Michael Kumi Larbi. Previous issues within the Unstructured Supplementary Service Data (USSD) menu allowed fraudsters to exploit less tech-savvy users, raising concerns about the robustness of the network’s security protocols.
However, MTN Ghana’s Chief Regulatory, Risk, and Compliance Officer, Godwin Tamakloe, argues against the notion of systemic failure. Tamakloe asserts that the majority of fraud cases arise from social engineering and user mistakes rather than inherent flaws in the system. He emphasizes the importance of customer education, arguing that informed users are less likely to fall victim to scams. According to Tamakloe, ongoing claims regarding USSD vulnerabilities lack substantial evidence, and enhancing user awareness is key to reducing fraud incidents.
Customer Education Initiatives
To combat the prevalence of mobile money fraud, MTN Ghana has invested significantly in customer education initiatives. These efforts span multiple platforms, including radio, television, social media, and community outreach programs. By leveraging various media, the company aims to reach a wide audience and disseminate crucial information about recognizing and avoiding scams. Education is not limited to formal literacy levels; it extends to cultivating awareness and fostering informed decision-making at crucial moments.
Despite the educational efforts, it’s clear that even highly educated individuals, such as lawyers, doctors, and cybersecurity professionals, can fall prey to these sophisticated schemes. This reality underscores that the issue transcends basic literacy and highlights the intricate nature of social engineering tactics. Proactively educating users about the nuances of these scams and encouraging prompt reporting of suspicious activities can significantly enhance the chances of tracing and recovering lost funds. MTN encourages customers to utilize multiple reporting channels, facilitating rapid response and increasing the likelihood of mitigating fraud’s impact.
Role of the Ghana Card
A critical aspect of combating mobile money fraud in Ghana is the effective implementation of the Ghana Card, the national identity system. Experts like Larbi and Issaka argue that the current application of the Ghana Card is flawed and hampers fraud prevention efforts. The Ghana Card has the potential to revolutionize identity verification across vital sectors, including banking, education, and employment. Comprehensive integration of this digital ID system could streamline the process of verifying individuals’ identities and significantly diminish opportunities for fraudulent activities.
To achieve this, it is essential to establish the supporting infrastructure and enforce digital identity regulations rigorously. Seamless and secure integration of the Ghana Card into daily transactions can provide an additional layer of protection against fraudsters who exploit gaps in identity verification processes. Proper implementation ensures that identity fraud becomes increasingly difficult, thereby bolstering the security of mobile money transactions. The success of such initiatives will require collaborative efforts from both public and private sectors, aiming to create an interoperable and secure digital ecosystem.
Overarching Trends in Mobile Money Fraud
Several overarching trends have emerged in Ghana, highlighting key areas of concern and opportunity for combating mobile money fraud. The increasing sophistication of fraud tactics poses significant challenges for users and service providers alike. As mobile money becomes widely adopted, fraudsters continuously evolve their methods, making it imperative for all stakeholders to stay ahead of these threats. Awareness and vigilance are crucial, as social engineering tactics exploit psychological manipulation to deceive even the most cautious individuals.
Another notable trend is substantial user negligence. Despite systemic vulnerabilities contributing to fraud, the role of user complacency cannot be underestimated. Social engineering preys on moments of user inattention or trust, leading to breaches in personal security. Additionally, insider threats within organizations remain a critical issue, with over half of financial fraud cases linked to internal actors. Addressing these threats calls for robust internal audits and security measures to detect and mitigate risks effectively.
Toward a Secure Digital Financial Ecosystem
In recent years, Ghana has seen a surge in mobile money use, bringing convenience and accessibility to financial transactions. However, this rapid proliferation has also led to a significant rise in cyber fraud, especially through social engineering tactics. In the first quarter of 2025 alone, a staggering 4.4 million Ghanaians fell victim to such scams, highlighting the severity of the issue. The popularity of mobile money, driven by its ease of use, has made it an attractive target for fraudsters. These cybercriminals use various techniques like phishing, malware, and even insider threats to exploit security vulnerabilities. Their constant innovation in breaching security measures poses a persistent threat. This alarming trend raises the question of whether increased education and awareness can effectively combat mobile money fraud. By educating users on identifying and resisting these scams, Ghana could potentially reduce the number of victims and enhance overall security in the mobile money ecosystem.
