is a correct word, but it is an **intransitive** verb that takes . You have to say:
> ****
> The ghost possessed Hanako.
> (or **** if " _A_ ghost ...")
When you want to rephrase this with as the subject, yes, it's okay to say:
> ****
> Hanako was possessed by a ghost.
If you thought "Wait, passive voice of an intransitive verb!?", remember there is something called "sufferer passive" or "indirect passive" in Japanese (e.g., , ). Even an intransitive verb works like this (as long as Hanako is negatively affected by the possession).
is a wago version of this, and it's intransitive, too.
> ****
> The ghost possessed/haunted Hanako.
>
> ****
> Hanako was possessed/haunted by a ghost.
does not necessarily mean the ghost "gets in" and takes full control. As is the case with most kango-wago pairs, sounds technical and specifically refers to the spirit possession, whereas has other usages.