Ghana ranks as one of the three most vulnerable countries in Africa to digital fraud, according to the first-ever Global Fraud Index released by Sumsub, an Africa-based verification platform.
The report places Ghana alongside Algeria and Ethiopia as the most at-risk countries on the continent.
The Global Fraud Index, which examined 103 countries worldwide, aims to assist governments, regulators, and businesses in understanding and mitigating digital fraud. It also sheds light on the root causes driving fraud across regions.
- Top Protected Countries in Africa: Mauritius, Botswana, and Morocco.
- Most Vulnerable Countries in Africa: Ethiopia, Algeria, and Ghana.
- Ghana’s Score: Ghana ranked 90 out of 103 globally, with a Fraud Index of 4.12—well above the global average of 3.12.
Sumsub’s analysis attributed Ghana’s high fraud vulnerability to economic challenges, inadequate government interventions, and low accessibility to anti-fraud resources.
The 2024 State of Inclusive Instant Payment Systems (SIIPS) in Africa Report by the AfricaNenda Foundation highlights digital fraud as a major barrier to financial inclusion. Alongside high accessibility costs and weak data protection, fraud contributes to the exclusion of over 400 million African adults from digital and financial ecosystems.
Sumsub identified key factors that increase a country’s susceptibility to digital fraud:
- Economic Health: High unemployment rates and low income levels.
- Resource Accessibility: Limited tools to detect and prevent fraud.
- Government Intervention: Insufficient actions to address economic challenges.
Countries with GDP per capita below $25,000 experience higher fraud rates compared to wealthier nations.
To address its digital fraud challenges, Sumsub recommends:
- Enhanced Fraud Prevention Systems: Leverage AI and machine learning tools.
- Government Collaboration: Partner with law enforcement for efficient reporting of suspicious activities.
- Public Education: Raise awareness about fraud prevention and regulatory compliance.
- Sector-Specific Reviews: Industries such as payments, trading, iGaming, and marketplaces should strengthen anti-fraud measures.
Juniper Research predicts that global losses from online payment fraud will surpass $362 billion between 2023 and 2028, signalling an urgent need for robust fraud prevention in digital payment sectors.
Highlights of the Global Fraud Index for Africa
- Internet Speed: Botswana had the lowest, while Egypt had the highest.
- Purchasing Power: South Africa leads, despite high unemployment.
- AI Preparedness: Zimbabwe scored the lowest in Africa.
- Government Support: Zimbabwe also ranked lowest in government intervention.
- Economic Health: Egypt had the weakest score in this pillar.
- KYC/AML Services Access: The EMEA region leads globally in speed and availability.
This inaugural report by Sumsub emphasises the critical need for African nations, including Ghana, to invest in digital fraud mitigation strategies to foster trust and inclusion in their financial ecosystems.