Banks and telecommunications companies must work more closely together to combat the growing threat of artificial intelligence-driven fraud, according to a new report by PwC. The professional services firm warned that as digital technologies continue to evolve, criminals are increasingly using advanced AI tools to automate scams, impersonate individuals through deepfake technology, and execute fraudulent schemes at a much larger scale than before.
The 16-page report, titled “AI’s Dual Role in Telecom Fraud,” explains that while artificial intelligence is making fraud more sophisticated, it can also become a powerful defense mechanism. According to the report, telecom operators and financial institutions can deploy AI systems to detect suspicious activities faster, analyse massive datasets, and identify fraudulent behaviour patterns in real time.
Fraud has long been a major challenge for telecom operators worldwide, leading to financial losses and reputational damage. Globally, telecom fraud was estimated at about $38.95 billion in 2023, underscoring the magnitude of the problem. In Nigeria, the situation has also raised concerns, with the Nigerian Communications Commission reporting that citizens lost approximately ₦12.5 billion to telecom-related financial crimes between 2019 and January 2023.
The report notes that the growing integration between telecom networks and digital financial services—such as mobile money platforms and online banking—is making fraud more complex. As telecom operators increasingly become part of the financial ecosystem, cybercriminals are targeting the interconnected networks. According to PwC, telecom companies possess large volumes of customer and network data, which gives them a strategic advantage in detecting irregular call patterns, suspicious messaging activity, and unusual transactions using AI-driven tools.
However, the firm stressed that technology alone will not solve the problem. PwC urged stronger collaboration between telecom operators, banks, and regulators such as the Central Bank of Nigeria and the Nigerian Communications Commission. By sharing intelligence, monitoring suspicious activities like SIM swap attempts, and building coordinated fraud detection systems, the sectors can better protect consumers and strengthen trust in the rapidly expanding digital economy.
source: punch