Fraudsters increasingly target bank customers instead of banking systems – Fraud detection expert

Absa Bank Ghana's fraud detection specialist, Nana Addo Ampem-Darko, has revealed that social engineering and exploiting customer trust are the most significant threats to digital financial security. At the 14th Absa-UPSA Law School Quarterly Banking Roundtable, he explained that fraudsters are now targeting customers directly, rather than attempting to breach bank security systems.

Ampem-Darko noted that investments in banking technology have made it harder for fraudsters to infiltrate financial institutions, leading them to manipulate customers into granting them access. He said that fraudsters often gain victims' trust through seemingly legitimate conversations, then persuade them to disclose sensitive information like usernames, passwords, and one-time passwords (OTPs).

In some cases, fraudsters convince customers to authorize transactions directly, making it difficult for banks to identify fraudulent activity. One reported incident involved a customer who was duped into setting up internet banking and sharing login credentials and OTPs with fraudsters posing as account protection helpers. The fraudsters then made transactions exceeding GH¢700,000 within two hours.

Ampem-Darko emphasized the importance of collaboration among financial institutions and continuous transaction monitoring to detect and prevent fraudulent activities. He urged customers to remain vigilant and avoid sharing confidential banking information, even with individuals claiming to be representatives of their banks.