The head of Internal Affairs at Hubtel, Ebenezer Boffour, says fraud cases involving fintech companies and payment service providers (PSPs) are increasing, with criminals increasingly exploiting digital payment channels to target users.

According to him, while fraud cases involving traditional banks appear to be declining, fintech platforms are recording an upward trend due to their position within the digital payment ecosystem.

Speaking at the JoyNews-Hubtel dialogue on the impact of fraud on Ghana’s digital economy on Wednesday, July 22, Mr Boffour said data from recent reports show that a significant proportion of reported fraud cases are linked to fintechs and PSPs.

“I'll say we are going upwards. Looking at the report that was released recently, when you look at the report, about 97% of the total fraud that happened is coming from fintechs or PSPs,” he said.

He explained that fraudsters often target fintech platforms because they serve as a link between customers and financial institutions, providing a quicker route for accessing funds.

“PSPs are just in the middle of the payment chain. And when it comes to fraud, fraudsters are looking for the point where they can immediately target and quickly move away with the funds,” he said.

Mr Boffour noted that directly attacking bank accounts or mobile money wallets can be more challenging, making payment service providers attractive channels for criminals.

He added that while banks and major telecom operators have over time increased public awareness about fraud prevention, some fintech platforms may not have reached the same level of public visibility in educating customers.

“When you come directly and say that I'm calling from MTN, people have heard about MTN here and there. MTN usually is in the news or is in the media talking about fraud reports,” he said.

“But where is Airtel? Where is Express Pay? Where are the other fintechs to propagate the fraud message?” he questioned.

Mr Boffour stressed that combating digital fraud requires collective action among fintech companies, banks, regulators and consumers.

He, however, explained that while fintechs record higher numbers of fraud incidents, the financial impact is more evenly distributed when considering the value of money lost.

“When you look at the amount involved, I'll say 50-50 because when you're able to hit one bank account, the amount you get there is higher than what you'll get when you hit a mobile money wallet,” he said.

He urged stakeholders within the digital finance space to intensify customer education and strengthen security measures as Ghana’s digital economy continues to expand.