As fraud and cybercrime increase, should auditors take lifestyle audits more seriously?

By Chester FIAMEGBE-SANI

Fraud and cybercrime are no longer distant or hidden problems in many African societies. They have become increasingly visible, normalized, and in some cases subtly celebrated. Across Ghana and other parts of Africa, unexplained wealth is openly displayed, luxury cars, expensive homes, and lavish lifestyles boldly showcased on social media by individuals with no clear or legitimate sources of income. This growing reality raises a critical question: are our accountability systems, particularly auditing and oversight institutions, doing enough? And should lifestyle audits be treated with far greater seriousness?

In many African societies today, outcomes often overshadow processes. A dangerous mindset has taken hold, one that suggests the “ends justify the means.” Wealth is admired without questioning how it was acquired. This attitude has severe consequences. Young people, seeing peers suddenly transition from poverty to affluence, are increasingly drawn into cybercrime, online romance scams, identity theft, digital financial fraud, and other internet-enabled crimes. In extreme cases, this desperation has even led some into ritual-related crimes. The pressure to “make it” quickly has eroded values and weakened ethical standards.

Real-life examples across the continent reinforce these concerns. In Ghana, several corruption and financial crime cases have exposed public officials and private individuals living far beyond theirdeclared incomes, with properties and assets that could not be justified by their salaries or businesses. Nigeria has recorded a surge in cybercrime-related arrests, with the Economic and Financial Crimes Commission (EFCC) uncovering cases where cyber fraud proceeds were laundered into luxury assets and real estate. Kenya and South Africa have also faced major scandals involving procurement fraud, illicit financial flows, and cyber-enabled corruption, where lifestyle indicators clearly conflicted with reported earnings. In many instances, warning signs were evident long before investigations commenced.

Lifestyle audits is systematic assessments that compare an individual’s known income with their standard of living, remain a powerful but underutilized tool in combating both traditional fraud and cyber-enabled financial crimes. When applied consistently and transparently, lifestyle audits can deter corruption, expose illicit enrichment early, and restore public confidence. Countries such as Rwanda have demonstrated progress by strengthening asset declaration regimes and enforcing accountability for public officials. Nigeria’s asset declaration framework under the Code of Conduct Bureau, though imperfect, shows that such systems can function effectively when backed by political will.

As a BSI-certified Internal Auditor, I strongly recommend that auditors in Ghana and across Africa move beyond traditional, document-based auditing approaches and adopt more modern, risk-focused methodologies.

Today’s fraud and cyber-related risks are increasingly sophisticated, requiring auditors to integrate tools such as data analytics, lifestyle audits, and cross-functional collaboration into their work. A proactive, technology-driven audit approach is essential to effectively identify emerging risks, enhance accountability, and safeguard institutional integrity.

Auditing institutions must integrate lifestyle audits with data analytics, digital forensics, and inter-agency collaboration. This includes closer cooperation with tax authorities, financial intelligence units, cybersecurity agencies, land registries, and financial institutions to track discrepancies between income, digital transactions, and asset accumulation.

However, lifestyle audits alone are not sufficient. Strong enforcement of asset declaration laws, protection for whistleblowers, effective cybercrime legislation, and swift prosecution of offenders are equally critical. Public education must also be prioritized. Societies must stop glorifying unexplained wealth and begin asking difficult but necessary questions. Parents, religious leaders, schools, and the media all have a role to play in promoting integrity and redefining success beyond material display.

Additionally, governments must invest deliberately in creating legitimate economic opportunities for young people. When youth have access to skills training, digital jobs, entrepreneurship support, and decent work, the appeal of fraud and cybercrime significantly diminishes. Prevention, through opportunity and education, remains more effective than punishment.

In conclusion, as fraud and cybercrime continue to evolve and spread, auditors in Ghana and across Africa cannot afford to remain passive. Taking lifestyle audits seriously is no longer optional, it is essential. Accountability must be visible, consistent, and impartial. Only then can we protect our institutions, safeguard the future of our youth, and build societies where success is earned, not stolen.

Chester is a Communication Strategist / Writer / Columnist / Photographer

Email: [email protected]

 

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