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

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

Ampem-Darko stated that advancements in banking technology have made it more difficult for fraudsters to infiltrate financial institutions, leading to a shift towards manipulating customers into granting access. He emphasized that fraudsters often gain victims' trust through legitimate conversations, eventually persuading them to disclose sensitive information such as usernames, passwords, and one-time passwords (OTPs).

Some fraudsters even convince customers to authorize transactions directly, complicating the identification of fraudulent activities for banks. He cited an incident where a customer was manipulated into setting up internet banking and sharing login credentials and OTPs with fraudsters posing as account protection helpers. The fraudsters then attempted multiple transactions exceeding GH¢700,000 within two hours.

Ampem-Darko attributed the bank's ability to prevent further losses to timely detection and blocking of the suspicious account. He stressed the importance of collaboration among financial service providers and continuous transaction monitoring to detect and prevent fraudulent activities. Additionally, he urged customers to remain vigilant and avoid sharing confidential banking information, even with individuals claiming to be calling on behalf of their banks.