Sumsub, an African-based leading full-cycle verification platform has released it maiden Global Fraud Index, indicating that Ghana is among Africa’s three most vulnerable countries to digital fraud.
The report, which is the first-ever in-depth study of its kind, showcases the susceptibility of 103 countries to digital fraud. It was intended to assist regulators, governments and businesses to identify, understand and prevent digital fraud.
It offers a complete overview of the risk of digital fraud, and reveals the underlying factors that fuel fraud in various parts of the world, aiming to raise public awareness on the root causes, rather than mere numbers.
Per the report Mauritius, Botswana and Morocco were the most protected against fraud, while Ghana, Algeria and Ethiopia were the most vulnerable.
Indeed, digital fraud was identified as one of three barriers to consumers in a study by AfricaNenda Foundation as part of their their 2024 State of Inclusive Instant Payment Systems (SIIPS) in Africa Report. The other two were high cost of accessibility and low level of data protection.
So digital fraud remains one of the reasons why a significant 400 million plus African adults are still digitally and financially excluded as of today.
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In response to questions from Techfocus24 about the level of vulnerability of Ghana, Sumsub said Ghana scored 90 out of 103 total countries from the Global Fraud Index, adding that in Africa, Ghana holds the 3rd position among the countries most vulnerable to digital fraud (after Ethiopia and Algeria).
“Ghana’s overall Fraud Index is 4.12, which is one full point higher than the global average of 3.12, so we can say that the country’s vulnerability to fraud is relatively high.
“If we take a closer look at the index pillars for Ghana – fraud intensity, resource accessibility, government intervention and economic health–they are as well above the global average,” it said.
According to Sumsub, the study looked at both internal and external data to do a comprehensive analysis of each country’s susceptibility to fraud. The full methodology can be found here.
It added that the fraud rate is determined by analysing Sumsub’s internal data which is based on volumes of up to 1 million+ checks daily.
In terms what makes a country more vulnerable to digital fraud, the report mentioned economic health, reflected in unemployment and low incomes among others, plus low accessibility to resources and inadequate government intervention in economic challenges.
“Low levels of these indicators could add more ‘opportunity‘ to commit fraud,” the report said. “Countries with a GDP per Capita of less than US $25,000 are showing higher rates of fraud activity on average, when compared with countries with GDP exceeding US $25,000.”
On how to mitigate digital fraud risk in Ghana, Sumsub said its Fraud Defense checklist provides some recommendations including robust fraud prevention systems that use AI and machine learning, collaboration with law enforcement for timely and accurate suspicious activity reports, and public education to ensure compliance with regulatory bodies among others.
Even though the report did not say which sectors are most vulnerable, Sumsub recommends that sectors like payments, trading, iGaming, and marketplaces should regularly review their anti-fraud measures as these industries can be particularly vulnerable to fraudsters.
Other key highlights of the Global Fraud Index Report of relevance to Africa include:
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Botswana scored the lowest internet speed, while Egypt had the best.
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South Africa has the highest purchasing power in Africa, despite having the highest unemployment rate on the continent.
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Zimbabwe scored lowest for AI preparedness in Africa, and also scored lowest in the government intervention pillar, suggesting the greatest opportunity for government support against fraud.
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Egypt scored the lowest in the Economic Health Pillar.
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EMEA (Europe, Middle East and Africa region) has the fastest access to all the necessary KYC/AML services.
