Control of fraud on mobile money services in Ghana: an exploratory study
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Date
2019-05-07
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Money Laundering Control
Abstract
Purpose – Fraud is a global economic menace which threatens the survival of individuals, firms, industries
and economies, and the mobile money service is no exception. This paper aims to explore the main causes of
fraud in the mobile money services in Ghana and the measures to combat the menace by the key stakeholders
connected to the mobile money services. The paper is motivated by recent reports of numerous fraudulent
transactions on the mobile money platform, and the need to clamp down these nefarious transactions with
effective and practicalmeasures to sustain the service.
Design/methodology/approach – A thorough review of existing studies on fraud risk relating to
mobile money services was done revealing a paucity of literature on the subject. Primary data were gathered
using an interview guide to explore the magnitude of the problem based on the views of employees of mobile
money operators, mobile money agents, banking supervisors from Bank of Ghana, employees of partnering
banks, employees of National Communications Authority and mobile money subscribers.
Findings – The study revealed that fraud in mobile money services is caused by weak internal controls and
systems, lack of sophisticated information technology tools to detect the menace, inadequate education and
training and the poor remuneration of employees. These factors disrupt the growth, and the smooth-running
of the services. To curb this menace, a detailed legal code and internal fraud policy should be developed and
used by mobile money operators and partner banks. Adequate training for mobile money agents should be
encouraged coupled with public awareness campaigns to educate stakeholders especially the mobile money
subscribers on the tricks of the fraudsters.
Research limitations/implications – With the chosen research methodology and limited sample size,
the findings may not reflect the views of all the stakeholders connected to the mobile money services.
Therefore, future studies on this subject are entreated to use research methods which embrace larger samples
to get more details about this menace.
Practical implications – The study will assist in tackling the mobile money fraud to sustain the service
in the foreseeable future.
Originality/value – This paper contributes to scanty literature on fraud relating to the mobile money
services by drawing lessons from a middle-income country.
Description
Research Article
Keywords
Control, Ghana, Service, Money, Mobile, Fraud, Services, Supervision