Investigative report on financial crime: MoMo fraud, illicit financial flows in Ghana

Mobile Money, often referred to as MoMo, is a financial transaction system via mobile phones that does not require a traditional bank account. Since its launch in 2009 by MTN, it has expanded financial access across developing countries. MTN was the first platform to enable share purchases with MoMo in 2020. MoMo’s popularity stems from its simplicity, speed, convenience, and affordability, with over 74 million registered users and 24 million active accounts. More than 80% of Ghana’s economy operates in the informal sector, where many individuals lack traditional bank accounts and rely on mobile money for financial transactions.

However, the growth of MoMo usage has brought with it significant security challenges. In recent times, the benefits of MoMo have been marred by reports of fraudulent activities. Fraudsters reportedly use sophisticated techniques to commit financial crimes, including fraud, money laundering, and cybercrime. Increasing security breaches are said to be eroding customer trust and confidence, causing financial losses, disrupting businesses, and harming economic productivity. Victims are often left distressed or psychologically traumatised.

Fraudulent schemes targeting MoMo users

Investigations suggest that fraudsters have developed numerous strategies to exploit Mobile Money users, including unauthorised fund withdrawals, often through interoperability transactions. These illicit financial activities reportedly operate through a network of complex schemes.

One such scheme came to light during an on-site investigation at MTN and Telecel offices, where dozens of frustrated customers gathered to demand answers and recover lost funds. One of the phone numbers allegedly used for phishing, vishing, and smishing is 0234520000, registered under the name Gifty Amo Bronya. Among other individuals named by victims is a person identified as Sylvester Oduro, associated with the mobile numbers 0549189483 and 0505112320. He allegedly holds multiple accounts with both MTN and Telecel.

Some victims claim that funds connected to unauthorised Mobile Money transactions were traced to a Telecel account reportedly linked to the above-named individual. Allegations also suggest that the funds may have been subsequently transferred to a primary bank account. It is further alleged that Oduro may siphon as much as GHC 50,000 daily and up to GHC 1,000,000 monthly through fraudulent activities spanning several years. The matter has reportedly been referred to the Criminal Investigation Department (CID) and other relevant authorities for further investigation. Attempts to reach the individuals named were unsuccessful at the time of reporting.

Victims speak out

Case 1: Kennedy Opong’s MoMo fraud experience

Herbal medicine practitioner, Kennedy Opong, reportedly suffered a major financial loss when GHC 8,740 was withdrawn from his MoMo account on January 30, 2025, without authorisation. He claims the transaction exploited vulnerabilities within MTN’s system. After unsuccessful attempts to resolve the matter with MTN and Telecel, he reported it to the CID. Mr. Opong’s financial statement shows that the withdrawal was made via a Telecel Push transaction allegedly linked to mobile numbers associated with a person named Sylvester Oduro.

Case 2: Telecel push fraud

A woman named Fatima Mustapha Hamza reportedly had GHC 3,500 illegally debited from her MoMo account. She claims that GHC 2,500 was withdrawn by someone named Macheal Aggrey (0503295334) through Telecel Push, and a loan of GHC 650 was also initiated in her name by someone identified as David Fianukor (0503420873), leaving her with a financial obligation.

Case 3: Family abroad regrets sending money via MoMo

A man known as Teacher Kofi received GHC 400 from relatives abroad to purchase building materials, but he claims the money was withdrawn without his authorisation. After reporting the issue to MTN without satisfactory resolution, his family allegedly accused him of misusing the funds, straining their relationship.

Case 4: SIM card fraud and unauthorized withdrawals

Dr. Paul Appia Kunadu, a financial and economic analyst, said his phone was stolen, and despite requesting MTN to block his SIM, his MoMo funds were later withdrawn by a person named Sampson Egekwe, using a Ghana Card ID. He said that even with a police report, MTN required a court order for resolution.

Deceased iindividuals’ IDs used to defraud

There are also claims that deceased individuals’ Ghana Card IDs are being used by fraudsters to register SIM cards and perpetrate financial crimes. This practice reportedly hampers investigations and prosecutions.

Cybersecurity expert’s warning

Mr. Abubakar Isaka, President of the Cyber Security Experts Association Ghana, said cyberattacks are increasingly common. While he personally avoided falling victim, some of his relatives were reportedly targeted. He described the experience as “devastating, not just financially, but psychologically”.

Digital fraud and MTN’s cybersecurity response

A viral TikTok video on April 12, 2025, showed a customer lamenting the loss of GHC 11,000 from her MoMo account. The customer claimed MTN Ghana’s response left her waiting 15 working days with no resolution. MTN Ghana issued a statement denying any technical breach, attributing the incident to social engineering tactics.

On April 25, 2025, MTN confirmed a cybersecurity breach affecting customer data in multiple countries. While assuring users that core systems remained secure, MTN acknowledged unauthorised access by a third party.

On May 4, 2025, the Cyber Security Experts Association Ghana (CSEAG) demanded transparency and accountability, stating that the breach affected about 5,700 customers and posed a significant threat to digital trust. CSEAG warned that a loss of confidence in the telecommunications sector could hinder Ghana’s digital development.

Economic impact and systemic reform

Financial analyst, Dr. Paul Appia Kunadu, said fraud discourages enterprises from accepting mobile payments, impacting economic activity. Mr. Godwine Kwami Tamakloe, Chief Regulatory, Risk & Compliance Officer at Mobile Money Ltd., said that even a small loss can affect customer trust. He noted that new internal audit systems, staff training, and technology upgrades are underway.

Chartered Accountant, Kwabena Anning, said reputational damage and reduced institutional trust may result from ongoing fraud. Financial Consultant Dr. Richard Atuhene added that some businesses are now refusing MoMo payments due to perceived risks.

Should victims get their money back?

Dr. Kunadu called for stronger regulations and compensation for verified fraud victims. He emphasised holding operators accountable for system vulnerabilities.

Should fraudsters be traced and arrested?

Mr. Abubakar Isaka believes that with registered SIMs, authorities should be able to trace and prosecute fraudsters. He added that insider threats remain a significant concern.

Visit to CID confirms scale of problem

During a visit to the Criminal Investigation Department (CID) of the Police Headquarters, officials confirmed that over 2,000 similar complaints had been filed, underscoring the need for systemic reform. Superintendent Emmanuel Gyebi, Director of the Cybercrime Unit, stated that several fraud suspects had already been arrested, and investigations are ongoing. Victims, including Mr. Opong and others, are calling for urgent intervention to recover lost funds and bolster security protocols.

Are Telcos responsible for MoMo fraud?

While user negligence plays a role, Abubakar Isaka cited Bank of Ghana reports from 2022 and 2024 indicating that over 50% of financial fraud cases involved insiders within financial institutions. He shared an anecdote of a merchant who was contacted by fraudsters just 30 minutes after activating a new number, raising questions about how the contact details were accessed.

’With over 50% of fraud cases in a year attributed to such threats, it is evident that individuals working with telcos are sometimes complicit in these schemes. For example, I once encountered a case where a merchant number was activated, and within 30 minutes of activation, the merchant received calls from threat actors claiming money had been transferred to that account. This raises questions about how these individuals obtained the merchant’s contact information, pointing to potential insider involvement.’’

Methods used by fraudsters

Social engineering remains a key tactic. Other methods include phishing, smishing, vishing, malware, and SQL injections. Fraudsters may also use QR codes (Quishing) and brute-force attacks to access sensitive information.

Financial sector fraud in Ghana

According to the Ghana Chamber of Telecommunications, cyber fraud cost citizens over GHS 4.4 million in the first quarter of 2025, double the previous year’s figure. The Bank of Ghana’s 2023 Financial Stability Review reported 13,451 fraud cases in 2023, with MoMo fraud accounting for 20% (2,700 cases) and losses exceeding GHS 10 million.

These losses could have been redirected into development projects such as youth employment and healthcare.

Conclusion

MoMo fraud continues to threaten Ghana’s digital financial landscape. Experts stress the importance of vigilance, public education, and systemic reform. Without proactive action, the risks of financial crime, money laundering, and illicit financial flows may continue to escalate.

The project received support from the Thomson Reuters Foundation through the Media Foundation for West Africa, as part of its global work aiming to strengthen free, fair and informed societies. Any financial assistance or support provided to the journalist has no editorial influence. The content of this article belongs solely to the author and is not endorsed by or associated with the Thomson Reuters Foundation, Thomson Reuters, Reuters, nor any other affiliates.

By: Kweku Bolten, Investigative Journalist
Email: detectiveeagle1@gmail.com