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Report Explores Use of Advanced Analytics for Improved Detection

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Financial firms constantly face a myriad of schemes and “bad actors” determined to commit fraud and gain access to customer accounts and funds.

These bad actors are taking advantage of digital services and digital transactions to develop new frauds and schemes.

Meanwhile, transactions are happening digitally and faster than ever before. As a result, IDC Financial Insights recommends that firms invest in new sources and combinations of data and advanced analytics to help uncover relationships between individuals, transactions, and events in real time (or near real time). In a new report, Business Strategy: The Use of Advanced Analytics in Fraud Detection and Prevention (Doc #US40137216), IDC Financial Insights examines the challenges and opportunities that firms face in developing and deploying fraud detection and prevention programs.

In this new report, IDC Financial Insights takes a look at the case for leveraging aggregated data and advanced analytics to improve fraud detection prevention programs at financial firms. Today’s fraudsters mimic customer and employees identities and legitimate transactions to avoid detection and arrest.

To effectively combat this threat, IDC Financial Insights recommends financial firms use a combination of visible and less visible strategies to asses current and future fraud risks, develop deterrents to prevent fraudulent activity, and reduce the opportunities for customers, employees, and bad actors to commit fraud.

Lead author and IDC Financial Insights Research Director, Bill Fearnley, illustrates with this example, “Imagine you are speeding on a highway with a keen eye out for law enforcement and speed traps.

“You’re getting away with it so far. But wait, there is a police plane flying above and behind you that you don’t see, monitoring your trip. Blue lights ahead.

You are busted, by someone you didn’t know was there. Welcome to the new world of fraud analytics – deploying tools that firms can deploy to catch bad actors, from a perch that fraudsters cannot see.”

Highlights Of The New Report Include:
A discussion on some of the fraud threat forms, including: account takeover (ATO), phishing schemes, new account fraud, fraudulent transactions, and malware.

IDC Financial Insights believes firms must be proactive in their fraud prevention and apply a risk-based approach to customer and transaction risk scoring.

Third party data and analytics service providers can deliver access to aggregated data and advanced analytics that provide insights “outside the walls” of the firm and help analysts uncover relationships, patterns, and anomalies in customer relationships and transactions.

IDC Financial Insights recommends firms take a dual approach to fraud detection and prevention with a combination of highly visible (i.e. multiple cameras) and less visible programs.

For less visible detection and prevention programs, aggregating internal data and external data and deploying advanced analytics (e.g. cognitive computing, machine learning, and complex event processing) can help firms take a wider view of data and information to discover new patterns and anomalies. Moreover, IDC Financial Insights outlines the following key actions to consider:

Centralize fraud operations: Centralizing operations, data sharing, and enabling collaboration among business units can help analysts uncover patterns and anomalies in transactions that look fine when viewed in isolation, but when combined may show patterns of fraud.

Augment fraud systems with 3rd party data and analytics: The insights gleaned in doing so can be used to augment customer profiles and investigations of bad actors and suspicious transactions.

Balance the customer experience and security requirements: Using advanced analytics and monitoring models can help to prevent fraud before it happens while limiting interference with the customer experience.

Deploy MDM strategies and tactics: It’s increasingly important for firms to have formal master data management (MDM) policies and procedures in place so that information is secure and that access to sensitive information and analysis is granted on a very selective basis.

Fearnley added, “Criminals and bad actors are developing more creative and aggressive fraud schemes and tactics to avoid detection and arrest. To effectively combat these threats, firms should be investing in risk-based approaches to fraud detection and prevention and using their privileged access to customer information and third party data and analytics services and combining them to help augment and automate their fraud prevention programs.”

 


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E-Business

NDPC Commits to Balancing Data Privacy, Protection Information

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Nigerian Data Protection Commission (NDPC), has expressed its commitment to balance information around data privacy and protection.

NDPC Commits to Balancing Data Privacy, Protection Information

Dr. Vincent Olatunji, national commissioner, NDPC, stated this in Abuja, at the National Data Privacy Summit with the theme, “Privacy in the Era of Emerging Technologies,” organised by the commission.

Olatunji said the NDPC, at the moment, was looking at balancing information around data privacy and protection.

“What we are doing is just to look at how to balance information around privacy and protection, which is really important, because as we are innovating, at the same time, we have to consider issues around privacy and protection,” he stated.

He added that the commission has been very bold in taking risks that would bring about growth.

“Our starting point is growing at a very alarming rate, and we are not afraid of anything. We can take risks. And that is why a lot is happening in Nigeria, and this is the level of clarity,” he explained.

In his address, Dr. Aminu Maida, executive vice chairman (EVC) of the Nigerian Communications Commission (NCC),  stated that Internet of Things holds promise for Nigeria’s economy.

The EVC, who was represented by Abraham Oshadami, executive commissioner, Technical Services (ECTS), noted that, “in an era in which digital assets, Internet of Things, future digital computing and other transformative technologies are key, and both a cornerstone of building trust for the adoption and a prerequisite for sustainable progress.

“Emerging technologies hold immense promise for Nigeria’s grand economy, but they also introduce complex risks to personal and individual rights.

“So, balancing innovation through post-ethical safeguards and public trust is the first step to ensuring that global digital advancement benefits all Nigerians without compromising their privacy or their security,” he added.

“As we just heard from the Nigeria Police, telecom operators have a vast amount of sensitive historical information daily, including connectivity apps and collaboration on privacy, security, and number protection, both to their and their inheritors,” he said.

Dr. Bako Shurkuk, commissioner for Science, Technology and Innovation, Plateau State, who represented Caleb Mutfwang, Governor of Plateau State, said, emerging technologies can be harnessed to attain sustainable growth.

 


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OADC Lagos Reinforces Commitment to Local Data Hosting and Digital Transformation @ NDPC’s National Privacy Week Summit

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Open Access Data Centres (OADC) Lagos has reaffirmed its commitment to Nigeria’s data protection and digital transformation agenda through its sponsorship and active participation in the Nigeria Data Protection Commission’s (NDPC) National Privacy Week Summit.

The National Privacy Week Summit, organised by the NDPC, convened policymakers, regulators, technology providers, and industry stakeholders to promote data privacy awareness, strengthen compliance with the Nigeria Data Protection Act (NDPA), and advance conversations around data security, sovereignty, and responsible data governance.

As a sponsor of the event, OADC Lagos demonstrated its continued support for the Federal Government’s drive toward local data hosting and data domiciliation, which are increasingly critical to safeguarding sensitive information, enhancing regulatory compliance, and building trust in Nigeria’s digital economy.

Through its carrier-neutral, Tier III Design certified data centre in Lekki, Lagos, OADC provides secure, resilient, and compliant infrastructure that enables government institutions and private sector organisations to host and manage data locally while meeting international best practices.

Commenting on the engagement, Adesola Adesugba, Country Marketing Manager, Open Access Data Centres Nigeria, said: “We are proud to have supported the Nigeria Data Protection Commission through the National Privacy Week Summit and to stand alongside the government in advancing Nigeria’s digital transformation objectives.

“Strengthening local data hosting and domiciliation is fundamental to national data sovereignty, improved security, and sustainable digital growth, and OADC Lagos remains committed to enabling this future.”

OADC’s participation at National Privacy Week Summit underscores its role as a trusted digital infrastructure partner to government and enterprise, supporting secure cloud connectivity, regulatory compliance, and the long-term development of Nigeria’s digital ecosystem.

Open Access Data Centres is part of the WIOCC Group and operates open-access, world-class data centres across Africa, serving cloud providers, network operators, enterprises, and public sector institutions.


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Kaspersky Launches OT Calculator to Align Cybersecurity Investments with Business Goals

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Kaspersky’s new online tool has been specially developed for industrial organisations to assess the potential costs associated with insufficient operational technology (OT) security.

By offering detailed financial forecasts, the calculator empowers senior management to make well-informed decisions regarding security investments.

Industrial organisations increasingly depend on interconnected systems, elevating cybersecurity to a critical factor in business resilience and profitability.

According to VDC Research, over 60% of industrial companies last year reported that cybersecurity breaches had led to significant costs. Despite this, a persistent disconnect remains between security teams and executive leadership as security professionals focus on minimising risk, while executives must balance cybersecurity concerns with broader business objectives. This misalignment often results in competing priorities and underfunded security initiatives.

To bridge this gap, Kaspersky has launched the OT Cybersecurity Savings Calculator, an innovative online tool designed specifically for industrial organisations to assess the potential costs of inadequate operational technology (OT) security¹.

The primary aim of this tool is to translate cyber risks into tangible financial metrics and support strategic discussions around priorities and budget allocation. By entering details such as their sector, sub-sector, region, company size, breach history, and existing cybersecurity measures, organisations can estimate their potential cost savings and receive customised, actionable recommendations.

The calculator benchmarks performance against industry peers and highlights the company’s position within the current threat landscape.

“We believe this calculator is a powerful resource for transforming complex cyber risk data into straightforward financial insights. It enables OT leaders, security professionals, and executive teams to develop clear, data-driven business cases and recognise the value of cybersecurity investments. With actionable guidance, it promotes a comprehensive approach to resource management and strengthens overall organisational resilience,” comments Andrey Strelkov, Head of Industrial Cybersecurity Product line at Kaspersky.


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