By 
Deeper collaboration between financial institutions and telecommunications operators will be critical to addressing the growing threat of digital fraud, according to a new report by PwC.
The report calls on the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to enable more robust data-sharing frameworks between banks and telcos, as fraud risks increasingly span both sectors.
Converging systems, shared vulnerabilities
As digital banking and mobile-based financial services expand, telecom infrastructure has become a critical layer in the financial ecosystem. This convergence has amplified risks, with fraud schemes such as SIM swap attacks and unauthorised account access exploiting vulnerabilities across both industries.
In Nigeria, the scale of the challenge is significant. PwC estimates that nearly 59 per cent of e-banking users have experienced some form of fraud, underscoring the urgency for coordinated action.
The report, titled “AI’s Dual Role in Telecom Fraud,” highlights that while telecom operators already deploy advanced systems to monitor network activity, these capabilities are not fully leveraged in supporting banking fraud detection. Similarly, banks’ sophisticated anti-fraud tools could enhance telcos’ ability to identify suspicious behaviour across mobile networks.
The case for real-time data sharing
According to PwC, closer integration—particularly through real-time data exchange and shared threat intelligence—would significantly improve fraud detection and response. Coordinated frameworks in markets such as the UK, Singapore, and Australia demonstrate the effectiveness of such approaches in strengthening system-wide resilience.
However, regulatory and compliance constraints continue to limit collaboration. Institutions remain cautious about sharing sensitive data due to privacy concerns and unclear legal frameworks, highlighting the need for regulators to provide clearer guidance.
“Stronger engagement between industry players and regulators can accelerate the development of responsive regulations that support innovation while safeguarding consumers,” the report noted.
Rising fraud losses and evolving threats
Globally, telecom-related fraud losses reached an estimated $38.95 billion in 2023. In Nigeria, data from the NCC indicates that telecom-linked financial crimes resulted in losses of approximately ₦12.5 billion between 2019 and early 2023.
The rapid adoption of digital channels—including USSD and mobile banking—has expanded financial inclusion but also widened the attack surface for fraudsters. Social engineering tactics remain a major driver of fraud incidents, with attackers exploiting human vulnerabilities alongside technological gaps.
The role of AI in fraud prevention—and risk
The report also explores the growing role of artificial intelligence in fraud detection. While AI enhances monitoring capabilities and response times, it introduces new risks, including the potential for manipulation through techniques such as prompt injection.
To mitigate these risks, PwC recommends that telecom operators adopt responsible AI practices, including regular algorithm audits, transparent decision-making frameworks, and the use of diverse training datasets to reduce bias.
A coordinated path forward
Beyond institutional collaboration, the report emphasises the importance of consumer awareness. Telecom operators are encouraged to expand public education campaigns, providing timely alerts on emerging fraud patterns and guidance on identifying scams.
Regulators, meanwhile, can leverage AI tools to automate compliance monitoring and focus supervisory efforts on high-risk areas.
Ultimately, PwC concludes that tackling modern fraud requires a system-wide approach. As financial services and telecommunications continue to converge, stronger alignment between banks, telcos, and regulators will be essential to building a more secure and resilient digital ecosystem.
Comments