• Thursday, May 23, 2024
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Harnessing Tech for fraud prevention, risk management in Nigerian banking sector, says Bisola-Beauty

Bisola-Beauty Ayankoya

Around the world, financial fraud poses a significant threat to the stability and trust of the banking industry. Financial fraud in Nigeria’s banking industry encompasses various illicit activities, including embezzlement, money laundering, identity theft, insider trading, and cyber fraud.

These fraudulent schemes erode the financial stability of banks and undermine public confidence in the financial system. Last year, the Financial Institutions Training Centre, a financial research and advocacy organisation operated by the Central Bank of Nigeria, revealed that financial institutions in the country reported ₦159 billion ($201.5 million) lost to fraud cases since 2020.

Combating financial fraud requires a multifaceted approach that integrates advanced technologies, robust risk management strategies, and forensic accounting techniques, according to Bisola-Beauty Ayankoya, a Finance and Audit/Accounting professional.

Read also: Access Bank launches awareness campaign to combat e-banking fraud

Ayankoya, who has experience in the shipping, maritime, IT, banking, and financial services industries, said that to explore prevention, there is a need to emphasise the pivotal role of Artificial Intelligence (AI) driven anti-fraud analytics and forensic accounting methodologies.

“In Nigeria, banks are increasingly adopting AI-driven solutions to enhance their fraud detection capabilities and mitigate risks.”

Commenting on the challenges of Fraud Prevention and its risks, Ayankoya, said that given a complex financial sector, detecting and preventing financial fraud is an ever-increasing concern for any company.

“Especially the banks and FINTECH companies, as hackers and criminals alike use codes to bypass the security for their malicious purposes and intent to cause losses to companies and innocent customers.

Read also: Collaboration, key to fighting FinTech fraud – CEO VerifyMe Nigeria

“Therefore, I believe, the synergy between AI-driven analytics by way of anomaly fraud detection and forensic accounting techniques is paramount for safeguarding assets and corporate portfolios against financial fraud.

“By harnessing the power of technology and finance investigative prowess, we fortify our defenses, ensuring the integrity and trustworthiness of corporate organisations and financial institutions,” she said.

Bisola-Beauty is a Senior Associate Member of the Association of Enterprise Risk Management Professionals (AERMP), a student Member of the Association of Chartered Certified Accountants (ACCA) UK, and a Professional Member of the Fintech Association of Nigeria (FINTECH NGR).

She added: “Effective financial fraud detection and prevention, coupled with robust risk management practices, are the bedrock of stability and trust in the financial sector, whether in Nigeria or Globally.

Read also: Tech firm launches campaign to protect Nigerians against cyber fraud

“It is not just about safeguarding assets and preventing losses through the likes of common online payment fraud; it is about protecting customers, preserving their confidence in the entire financial industry, fostering economic stability, and staying one step ahead of potential risks that could contribute to financial losses which would negatively affect the Society at large.”

Bisola-Beauty is an alumnus of the University of Lagos, Nigeria. She is also on an Excellent Merit President Scholarship Award and an MBA Candidate at San Francisco Bay University, California to gain organisational management values and leadership ethics for managerial roles in Finance, Management Operations, Business, and Financial Analytics for Investment Banking.