Fraud costs the banking industry US$67 billion a year; Two institutions pledge to support the country’s banks | Bank and finance

The rise of digital payment platforms and digital banking systems comes with risks and costs for the financial sector.

The latest figures from the Association of Certified Fraud Examiners (ACFE) indicate that the global financial industry loses approximately US$67 billion each year due to fraud-related activities.

The United Nations Office on Drugs and Crime (UNODC) also reports that approximately US$1.6 trillion is laundered annually around the world through banks for criminal enterprises and terrorist activities.

In Ghana, the situation is no different as the 2021 Specialized Banking and Depository Institutions (SDI) and Electronic Money Issuers (EMI) Fraud Report released by the Bank of Ghana indicated that the banking sector has lost GH¢61 million due to fraud and other bank malfeasance in 2021.

The need for banks to strengthen their anti-fraud and anti-money laundering systems has therefore become more necessary than ever.

It is against this backdrop that IT solutions company, CWG Ghana, has pledged to deepen its collaboration with financial crime risk management company, Clari5, to jointly help banks combat corporate fraud and money laundering.

In a media interaction, Clari5 Managing Director Rivi Varghese, who is on a business visit to Ghana, said the two institutions are committed to helping Ghanaian financial institutions maintain trust with customers.

Trust is essential

He said Clari5 currently serves more than 710 million accounts globally, operates in 24 countries and processes around 10 billion transactions every day.

He said the company is therefore ready to bring this expertise and experience to help Ghanaian institutions.

“Trust is so essential and if we lose faith in our financial system, our economy collapses.

“This is why central banks and commercial banks are investing heavily to make things trustworthy. There are normally around 10,000 attacks on every bank every day, which requires every bank to harden their systems,” did he declare.

The Managing Director of CWG Ghana Limited, Harriet Attram Yartey, said Clari5, who was one of her strategic partners, was in the country for a visit aimed at strengthening business relations between the two institutions.

She said the visit was also to ensure that some of the customers who have already started to engage with the company are moving in the right direction.

Ms Yartey pointed out that the CWG had been in operation for over three decades across the continent and would be 20 years old in Ghana next year.

“Our business covers all markets, from telecom operators, banks, oil and gas companies, governments, manufacturing companies, among others.

Over the years we have helped hundreds of businesses across Africa and our goal is to ensure that we remain the benchmark for IT excellence in Africa,” she said.

Provide business solution

On his part, the Head of Project Management and Business Development at CWG Ghana, Oluwaseun Layade, said the CWG was not just an IT company but a business solutions provider.

“We stopped being just an IT company. We look at business problems and use IT to solve them to enable businesses to grow, especially in our age when everything has moved to the cloud.

“Companies didn’t want to migrate to the cloud, but COVID-19 taught us a tough lesson and people who didn’t want to migrate had to make that transition immediately and the CWG was able to help many organizations make that transition” , he stated.

Source: graphic.com.gh

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