Breaking the chains of cyber fraud in Nigeria: The AI revolution

BY UGOCHUKWU OBINNA

Cyber fraud, synonymous with “419 scams” in the global imagination, has cast a long shadow over Nigeria. The financial, social, and reputational damage inflicted on individuals, businesses, and institutions demands a strategic shift beyond traditional enforcement. While arrests like Ramon “Hushpuppi” Abbas grab headlines, a more sustainable solution lies in leveraging cutting-edge technology like artificial intelligence (AI).

Nigeria’s current approach largely hinges on law enforcement and regulation. The Economic and Financial Crimes Commission (EFCC) reports convicting nearly 3,000 individuals by October 2022, with many being young Nigerians. However, chasing individual perpetrators proves reactive and resource-intensive. We need a proactive shield before the fraud occurs.

In recent years, Nigeria’s efforts to combat cyber fraud have primarily focused on traditional methods such as law enforcement and regulatory actions. A notable case in November 2022 involved Ramon Abbas, also known as “Hushpuppi,” who was sentenced to 11 years in federal prison in the United States for money laundering after being arrested in Dubai.

Additionally, statistics from the Economic and Financial Crimes Commission (EFCC) revealed that by October 2022, 2,847 individuals were convicted of cyber fraud in Nigeria, with many of them being young people.

To enhance these efforts, the integration of artificial intelligence (AI) offers a promising solution. AI can significantly bolster the capabilities of anti-corruption agencies like the EFCC in several ways.

• Pattern recognition powerhouse: AI, trained on vast datasets, can spot anomalies in user behaviour – unusual transactions, suspicious login attempts, or sudden spikes in activity – much faster and more accurately than humans. Think of it as a tireless sentinel, constantly scanning for red flags.
• Evolving shield, not static wall: Cybercriminals are notorious for adapting their tactics. AI, through machine learning, can stay ahead of the curve. It can continuously learn from new fraud attempts, automatically updating security measures and anticipating future threats. This dynamic defence keeps pace with the ever-changing landscape of cybercrime.
• Prioritising prevention, not just punishment: AI can delve deep into financial systems and online interactions, pinpointing vulnerabilities and areas susceptible to fraud. This risk assessment capability allows authorities to prioritize preventive measures, allocating resources efficiently and strategically fortifying potential weak spots before they are exploited.

The success stories are encouraging. Mastercard’s AI-powered fraud solution, adopted by UK banks, led to a significant increase in fraud detection. Imagine the impact such technology could have in a country like Nigeria, with its large and digitally connected population.

The argument isn’t just about catching up, it’s about leaping forward. As Africa’s most populous nation and largest economy, Nigeria has the potential to become a leader in AI-driven cybersecurity. This isn’t just about protecting its citizens and institutions; it’s about safeguarding its digital future and fostering trust in its online ecosystem.

Embracing AI isn’t a magic bullet, but it’s a powerful weapon in the fight against cyber fraud. It’s time for Nigeria to leverage this technology, not just to chase shadows, but to build a proactive defence, shielding its citizens and institutions from the ever-evolving threats of the digital age. The future of Nigeria’s digital security, and its reputation on the global stage, may very well depend on it.

Obinna works at Appen UK, a multinational company that provides data used for the development of machine learning and artificial intelligence. He can be contacted via [email protected].