Telecom companies should invest in sophisticated anti-fraud tools that employ machine learning and Artificial Intelligence (AI) to enhance detection and response times while conducting regular audits to ensure that systems remain up-to date and effective.

That’s according to Pricewaterhouse Coopers (PwC’s) latest paper on AI fraud in the Telecom sector.

The paper notes the dual role of Artificial Intelligence as both a threat and a shield highlights the need for Nigerian telecom operators to adopt AI deliberately and strategically.

It calls for a deeper understanding of how technological disruption is transforming fraud risks today and how those risks may evolve in the.

The professional services firm noted that the rapid adoption of AI is reshaping the fraud landscape in the telecommunications sector, enabling criminals to automate scams, impersonate victims through deepfake technologies, and scale fraudulent schemes with unprecedented speed.

The 16-page report, titled ‘AI’s Dual Role in Telecom Fraud’, noted that while AI is helping fraudsters launch more sophisticated attacks, the same technology can also serve as a powerful defensive tool for telecom operators and financial institutions.

“AI has tremendous potential to drive positive change across sectors, but it also enables fraudsters to create and disseminate scams quickly and at scale,” PwC said, warning that the expanding digital ecosystem linking telecom networks and financial services is creating new vulnerabilities.

Fraud has long posed a significant challenge for telecom operators worldwide, resulting in financial losses, reputational damage, and regulatory scrutiny.

Globally, telecom fraud was estimated at approximately $38.95 bn in 2023, highlighting the scale of the problem. In Nigeria, the sector has also faced rising risks.

According to the Nigerian Communications Commission (NCC), citizens lost approximately N12.5 bn to telecom-related financial crimes between 2019 and January 2023.

PwC said the growing integration between telecom networks and financial services, such as mobile money platforms and digital banking, is further complicating the fraud landscape.

“When fraud occurs across interconnected platforms, both telecommunications and financial services providers face regulatory scrutiny and erosion of customer trust,” the report said.

The firm added that telecom operators are increasingly becoming critical infrastructure for digital financial services, exposing them to greater risk as criminals target the ecosystem.

Despite these risks, PwC said telecom companies have a unique advantage in the fight against fraud due to the vast amount of network and customer data they possess.

By deploying advanced AI systems, telcos can detect suspicious activity patterns, flag unusual call behaviour, and identify fraudulent transactions in real time.

For example, AI-driven pattern recognition can analyse large datasets to detect irregular call durations, unusual call frequencies, or activity occurring at odd hours, indicators that may signal fraudulent activity.

Machine learning models trained on historical fraud cases can also help identify subtle warning signs that traditional detection systems might miss.

PwC noted that some telecom operators are already deploying AI-powered spam detection tools capable of analysing hundreds of behavioural parameters to determine whether a message is fraudulent.

Real-time data analysis, the firm added, can allow companies to block fraudulent activities before they cause major financial damage.

Beyond fraud detection, AI can also help organisations respond more effectively to incidents.

Using natural language processing, generative AI systems can convert technical security data into simplified reports tailored for regulators, executives, and compliance officers.

However, PwC said technology alone will not be enough to curb the growing threat.

The firm stressed that stronger collaboration between telecom operators, financial institutions, and regulators is essential to prevent fraud from spreading across digital platforms.

Telecom companies, it said, possess sophisticated tools capable of monitoring call patterns and network behaviour, which could help banks detect suspicious activities such as SIM swap attempts.

At the same time, banks have developed advanced fraud detection algorithms that could enhance telecom operators’ ability to identify suspicious activity across their networks.

“By sharing insights and real-time threat intelligence, both sectors can strengthen their individual and collective defences,” PwC said.

The firm cited international examples where such collaboration has improved fraud detection and response times, including initiatives in the United Kingdom, Singapore, Australia, and the Philippines. PwC also emphasised the importance of closer engagement with regulators such as the Central Bank of Nigeria and the Nigerian Communications Commission to ensure clear and responsive regulatory frameworks that support innovation while protecting consumers.

MTN Nigeria expanded its lead in Nigeria’s fixed broadband market after adding 13,433 subscribers to its fibre-to-the-home service in December 2025. The gains come as smaller providers struggle to retain users amid rising demand for high-speed internet.

Industry data from the Nigerian Communications Commission (NCC) showed sharp subscriber losses among smaller operators.

21st Century Technologies saw its subscriber base fall from 175 in December to 82 in January, a drop of more than 50 percent.

SWIFT Nigeria recorded an even larger decline.

The company lost 11,285 users, with total subscribers falling from 25,484 to 14,199, a 44.3 percent decrease.

The gap between large infrastructure providers and smaller operators is widening as broadband demand grows across Nigeria.

Companies with extensive fibre networks can offer faster speeds and wider coverage, while smaller competitors face higher costs and limited scale.

MTN has accelerated its investment in network infrastructure to maintain its lead.

The company spent ₦1 trillion, or about $715 million, in capital expenditure in 2025, more than double the ₦443.5 billion invested in 2024.

The investment followed a return to profitability, with profit after tax reaching ₦1.1 trillion after losses in 2024 linked to foreign-exchange pressures.

Spending focused on network modernization, 4G expansion, 5G rollout and deeper fibre deployment.

The operator expanded its fibre-to-the-home footprint to about 4 million households, concentrating deployments in Lagos, Abuja, Port Harcourt, Kano and Ibadan as data traffic rose 34 percent.

Network vandalism remains a challenge. MTN recorded 9,218 fibre cuts in 2025, an average of 25 incidents per day, affecting 211 base stations.

Key Takeaways

Nigeria’s broadband market is entering a scale phase where infrastructure investment is becoming the main competitive advantage.

Telecom operators with strong balance sheets are deploying billions of naira into fibre networks to capture demand for high-speed connectivity driven by streaming, remote work, digital payments and cloud services.

Fibre infrastructure also strengthens mobile networks by connecting base stations and improving 4G and 5G performance.

However, the economics of building and maintaining fibre networks remain challenging in emerging markets. Infrastructure vandalism, power supply instability and high deployment costs increase operational risk.

These factors make it difficult for smaller internet service providers to compete with large telecom operators that can spread costs across millions of customers.

As demand for broadband continues to grow in Africa’s largest economy, the sector may see further consolidation, with dominant operators strengthening their market position while regulators face increasing pressure to maintain competition and affordable access to high-speed internet.

credit…. dabafinance.com

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