How UK and US Guests Are Scamming Ghanaian Businesses with Chargebacks During ‘Detty December’

Ghana’s ‘Detty December’ and ‘Year of Return’ festivities have become major economic drivers, attracting visitors from the UK, USA, and beyond. However, local businesses are now sounding the alarm over a growing financial scam—fraudulent chargebacks initiated by international guests after they return home.

How the Scam Works

Chargebacks allow customers to dispute transactions with their banks if they believe they were overcharged or did not receive a service. However, some returnees are abusing this system—enjoying luxury services in Ghana and later reversing payments from abroad, leaving local businesses at a loss.

Hotels, restaurants, event organizers, and even nightlife venues have all reported falling victim to these fraudulent claims, which often come weeks after services were provided. The scam has also been reported in Nigeria, where returning diaspora, known as ‘I Just Got Backs’ (IJGBs), have been accused of similar fraud.

Massive Financial Losses for Local Businesses

The financial impact is significant. In December 2024, hotels in Lagos alone generated ₦54 billion ($35 million), while Ghana’s hospitality and nightlife sectors also experienced record revenues. However, fraudulent chargebacks are eating into these profits.

All of you uk,us & canada people initiating dispute . is it really fair? If you don’t have money to spend for Detty December, don’t come, it’s not by force. My Business has received over 10 in last one week. I can see your real names too. I just don’t want to embarrass anyone.… pic.twitter.com/wjuEB8BDa3

— Bizzleosikoya.eth (@bizzleosikoya) January 18, 2025

In Nigeria, fintech giant Interswitch reportedly lost ₦30 billion ($20 million) due to chargeback fraud, highlighting the severity of the issue. While Ghanaian businesses may not have reported exact figures, industry insiders warn that many are struggling with sudden financial setbacks from these scams.

How Businesses Can Protect Themselves

To counter this growing problem, Ghanaian businesses must tighten security and payment policies:

✅ Surveillance & Documentation – Install security cameras and keep transaction records to dispute false claims.
✅ Stricter Payment Terms – Require ID verification, signed receipts, and confirmation emails for high-value transactions.
✅ Local Payment Gateways – Use payment processors that offer better protection against fraudulent chargebacks.

As ‘Detty December’ grows in popularity, so does the risk of chargeback scams. Ghanaian businesses must stay vigilant to protect their earnings from international fraudsters taking advantage of the system.

Best advice, avoid all cards like the taxi driver below.

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