Nigeria is stepping up its fight against financial fraud as the volume of electronic transactions explodes. With over N1.55 quadrillion (roughly $1 trillion USD) worth of electronic transactions processed in 2022 alone, and N59 billion lost to fraud in the past five years, the urgency for improved security is clear.
Regulators and financial institutions are turning to artificial intelligence (AI) for solutions. New measures include geofencing Point-of-Sale (PoS) terminals to restrict their location and using APIs to identify recycled SIM cards, a common tool for fraudsters. Additionally, the timeframe for owning an unused SIM card will be shortened from six months to three months.
Experts acknowledge that existing measures offer some protection, but AI presents a powerful new weapon. Real-time data tracking allows for immediate fraud alerts based on unusual customer behavior. However, effectively utilizing AI requires upskilling the current tech and fintech workforce. Collaboration between the government and financial institutions is crucial for proactive pattern analysis to stay ahead of evolving fraud tactics.
Source: Business Day