Unveiling the Menace of Mobile Money Fraud in Ghana

Godsway R. Akakpo
6 min readJun 1, 2023

--

As Ghana steadily embraces digital transformation, one aspect that has gained immense popularity and convenience is mobile money services. Mobile money has revolutionized financial transactions, empowering millions of Ghanaians with a secure and accessible means of transferring money, paying bills, and managing their finances. However, with the rise in mobile money usage, a threat has emerged — mobile money fraud. This article aims to shed light on the modus operandi of mobile money fraudsters in Ghana and measures you can take to protect yourself.

The Mobile Money Revolution:

Mobile money services, spearheaded by telecommunication companies and financial institutions, have rapidly transformed Ghana’s financial landscape since its inception in July 2009. Mobile money in Ghana has seen a massive adoption over the years with over 56.7 million mobile money wallets created as at the end of February 2023 and 20.5 million active accounts over the same period.

Ghana’s mobile money market is estimated to be US$ 121.8 Billion as at the end of 2022 and is expected to reach US$ 590.7 Billion by the end of 2028.

Data from the Bank of Ghana shows Ghs134 billion was processed through mobile money in February 2023 alone.

With over 40% of the population unbanked, mobile money has bridged the gap, providing financial inclusivity to even the remotest corners of the country.

The simplicity of transactions, low cost, and widespread accessibility have made mobile money a game-changer in Ghana’s financial ecosystem.

The Growing Threat of Mobile Money Fraud:

Sadly, as the adoption of mobile money services has soared, so has the prevalence of fraud. Mobile money fraud involves deceptive schemes that target unsuspecting users, aiming to swindle them out of their hard-earned money.

Available data from the Bank of Ghana showed Ghs12.8 million was lost to mobile money fraud in 2021 alone.

Fraudsters employ various techniques such as Reversal of erroneous transactions, Fake Delivery Scam, Fake promotions, SIM card swapping, Phishing, and Social engineering to carry out their illicit activities.

Their Modus Operandi:

Reversal of erroneous transactions: This is one of the common methods used by Momo fraudsters in Ghana. A fake SMS is sent that indicates a deposit into a customer’s mobile money wallet. The Momo fraudster then calls the customer pretending to be from the mobile money operator’s office. They inform the customer of a wrong deposit and offer to assist reverse the transaction. Most people fall victim to this scam because they don’t check their mobile money balances and allow the fraudster to withdraw money from their wallets.

Fake Delivery Scam: Fraudsters pose as delivery companies and call customers under the pretext of delivering goods to them from relatives abroad. The fraudster informs the victim that there are additional fees or charges associated with the package delivery, such as customs duties, taxes, handling fees, or insurance costs. They insist on receiving immediate payment before delivering the item. Once payment is made, the fraudster disappears or provides excuses to delay the delivery indefinitely. The victim realizes that there was no legitimate package, and they have fallen victim to a scam.

Fake promotions: Scammers create enticing promotions, such as fake lotteries, giveaways, or discounted offers, designed to attract potential victims. These promotions may be sent via email, text messages, social media, or even through phone calls. To participate in the promotion or claim the supposed prize, the scammer asks victims to provide personal information, such as their name, address, phone number, and sometimes even financial details. This information can later be used for identity theft or sold on the black market. In most cases, they request payment for processing fees or other fabricated expenses associated with claiming the prize or receiving the promised discount. Victims are often asked to make payments to a mobile money number. Once the scammer receives payments, they typically vanish without delivering the promised prize or providing any genuine value. Victims realize that they have been tricked into a scam and suffer financial losses or potential identity theft risks.

SIM Card Swapping: SIM card swap, also known as SIM card cloning or SIM swapping, is a fraudulent technique where an attacker gains unauthorized access to someone’s mobile phone number. By manipulating the mobile network provider, the attacker replaces the victim’s SIM card with theirs. This allows them to receive all communications intended for the victim and potentially gain access to their accounts and personal information. Once the fraudster has access to this information, they can withdraw or transfer funds from the victim’s mobile money wallet.

Phishing: Fraudsters send messages or make phone calls pretending to be representatives from mobile money operators, luring individuals into disclosing their account details or PIN numbers. These tactics trick users into unknowingly handing over control of their mobile money accounts.

Social Engineering: Fraudsters employ psychological manipulation techniques to deceive individuals into revealing their sensitive information. They may impersonate bank representatives, mobile money agents, or even acquaintances to gain trust and extract personal data.

Combating Mobile Money Fraud:

Whiles the Mobile money service providers are continuously upgrading their security protocols, implementing measures such as transaction limits, and fraud detection systems to safeguard users’ accounts, you can take the following measures to protect yourself;

Protect your Personal Information: Never share your PIN, username, password, or any other sensitive information with anyone, including mobile money agents or customer care representatives. Mobile money service providers will never ask for such information over the phone or via email.

Verify Callers and Text Messages: Be cautious when receiving calls or text messages requesting personal information or financial details. Always verify the authenticity of such requests by contacting the service provider directly using their official contact information.

Monitor Account Activity: Regularly review your mobile money transaction history to identify any unauthorized or suspicious activity. Report any discrepancies to your mobile money service provider immediately.

Educate Yourself: Stay informed about the latest mobile money fraud techniques and tactics used by fraudsters. Regularly seek updates from official sources, such as mobile network operators and financial institutions, to stay ahead of potential threats.

Report Fraudulent Activities: If you become a victim of mobile money fraud, report the incident to your mobile money service provider, the police, and the Ghana Police Service’s Cyber Crime Unit. Providing timely information can help authorities track and apprehend fraudsters.

How to report Fraud transactions to mobile money operators:

To report fraud transactions on MTN Mobile Money, please follow the steps below;

1. Dial the MTN Mobile Money Shortcode *170#

2. Select option 6: My Wallet

3. Choose 4: Report Fraud

4. Select the fraud type you want to report from the list.

5. Type in the Momo fraudster’s number and confirm if money has been transferred to the fraudster.

6. You will be required to give details of what transpired between you and the fraudster.

You can also call MTN customer care on 100 to report fraud issues.

To report fraud transactions on Vodafone Cash,

· Please contact their customer care on 100 and lodge a complaint.

· You can also send an email to info.gh@vodafone.com

To report fraud transactions on Airteltigo money,

You can contact their customer care on 0260000100.

Alternatively, you can send an email to info@airteltigo.com.gh to report fraud issues.

Reporting Fraud issues to the Ghana Police Service:

When it comes to combating Fraud in Ghana, Ghana police are well known for this, so if you suspect any fraud issue on your mobile money wallet, you can report the case to any police station near you, and they will investigate it.

Conclusion:

Mobile money fraud poses a significant challenge to Ghana’s financial landscape, jeopardizing the trust and confidence in digital financial services. By promoting public awareness, implementing robust security measures, strengthening regulations, and fostering collaboration among stakeholders, Ghana can strive to mitigate the threat of mobile money fraud. As individuals remain vigilant and authorities take proactive steps, the transformative power of mobile money can be harnessed for the benefit of all, promoting financial inclusion while minimizing the risks associated with fraudulent activities.

--

--

Godsway R. Akakpo

Risk analyst, Fraud Investigator, Certified Information Security analyst and Data Scientist