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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

NIMC Grants NCoS Licence to Register Inmates for NIN

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National Identity Management Commission (NIMC) has granted licence for the Nigerian Correctional Service, (NCoS) to register inmates in the over 252 custodial centres across the country for National Identity Numbers, (NIN).

NIMC Grants NCoS Licence to Register Inmates for NIN

The approval followed the request made by Sylvester Nwakuche, acting controller general of the NCoS, who paid a visit to Engr Abisoye Coker-Odusote, director general/chief executive Officer of NIMC, in her office.

The acting controller-general, said the licence to carry out registration of inmates for NIN would eliminate exclusion of inmates from the country’s National Development plans, ensure their safety and security and facilitate their smooth recapture in times of jailbreaks.

The NCoS boss said the visit to the headquarters of NIMC was in search of collaboration that would enable the Service carry out its mandate seamlessly following on going reforms of the Correctional Service system.

According to Nwakuche, there are lots of socio-economic developments within the Correctional Service systems which had led to a number of inmates obtaining University degrees, Masters Degrees and Doctor of Philosophy (PhD) in various fields.

He said such inmates should not be excluded from the national development plans of the country as they should be integrated into the society to become useful for their families and the country.

Nwakuche said inside the Correctional centres are those awaiting trials whose innocence and otherwise has to be decided by the Courts, but argued that in times of National planning, census and other critical national development issues, they should not be disallowed from participating.

Coker-Odusote who granted the licence said NIN has become critical and essential to the country’s national development plans, stressing that NIMC has gone far with the private sector, especially the banks and the Central Bank of Nigeria (CBN) as all banks accounts are now linked with the NIN.

Coker-Odusote said the Eight points Agenda of President Bola Tinubu are also anchored on the Country’s digital identity or National identity Number, stressing that for instance NIN was tied to students loans to eradicate duplicity and prevent ghost beneficiaries.

Coker-Odusote expressed delight in the partnership with the NCoS, saying that the Commission had already entered into partnership with the Nigeria Immigration Service, NIS and other agencies in order to facilitate the smooth delivery of their constitutional mandates.

She commended Dr Olubunmi Tunji-Ojo, minister of Interior, for his dynamic leadership and role in ensuring the delivery of dividends of democracy to Nigeria through various reforms.


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NIMC Trains 388 Personnel to Boost NIN Enrolment

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National Identity Management Commission (NIMC) has kicked off a three-day training program for 388 personnel aimed at enhancing the National Identification Number (NIN) enrolment process across the country.

NIMC Trains 388 Personnel to Boost NIN Enrolment

The training, tagged “Refresher Training of Trainers on NIN Integration to the National Social Register: Technical and hands-on devices and field operations and procedures”, is in collaboration with the National Social Safety-Net Coordinating Office.

The training is also to equip personnel with the necessary skills to efficiently handle the complexities of enrolment processes

In her address at the event held in Port Harcourt on Monday, Abisoye Coker-Odusote, director-general and chief executive officer, NIMC, noted that the initiative aligns with the commission’s overarching goal of achieving secured and great success for the Renewed Hope social initiatives.

Represented by Adedapo Adedoyin, her technical advisor on ICT, the NIMC DG said the event is a pivotal initiative that marks a significant step forward in our mission to enhance and modernize the National Identification Number enrolment process across Nigeria.

She stated, “Today, I am pleased to announce the launch of a comprehensive training program aimed at refreshing the technical and operational skills of the National Social Safety-Net Coordinating Office State Operations Coordinating Unit and NIMC staff.

“This initiative focuses on practical and field-based exercises, ensuring that our teams are well-equipped to handle the complexities of enrolment processes with precision and efficiency.

“This initiative aligns with our overarching goal of achieving secured and great success for the Renewed Hope social initiatives. Through verified digital identification, we aim to improve the lives of Nigerians by providing them with access to essential services and opportunities that require a reliable and secure identity verification system”.

Coker-Odusote explained that the training program will be conducted in two batches, encompassing four states: Kwara, Nasarawa, Kano, and Rivers. A total of 388 attendees will participate in this initiative, including 225 NASSCO State Operations Coordinating Unit representatives, 35 NIMC facilitators, and 128 State support staff.

She added, “The sessions are meticulously designed to foster knowledge sharing and hands-on experience with NIMC’s enrolment device and software, ensuring that our personnel are adept at using these tools to their full potential.

“By empowering our teams with enhanced skills and practical experience, we are setting the stage for more efficient and accurate NIN enrolment processes across the nation”.

Coker-Odusote further said the training program “is a crucial step toward achieving the World Bank’s Identification for Development Initiative target of enrolling 180 million Nigerians with secure digital IDs.

“By bolstering our technical and operational capabilities, we are ensuring that NIMC is well-positioned to meet and exceed this target, thereby contributing to the global vision of inclusive and accessible digital identification for all”.

The NIMC boss8 called for collaboration between all stakeholders saying, “As we embark on this journey, I urge all participants to embrace this opportunity for growth and development.

“Together, we can build a robust and efficient National Identification System that will serve as the cornerstone for Nigeria’s social and economic progress.”

 


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Kaspersky Discovers New Scam Scheme Targeting Businesses on Social Media

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Kaspersky experts have uncovered a new phishing scam targeting businesses that promote their pages on Facebook. Scammers send emails allegedly on behalf of Meta for Business – Facebook’s platform for businesses – claiming the recipient’s page contains prohibited content.

The email suggests users provide explanations in order for their account and page to be unblocked. The goal of the attackers is likely to get access to users’ business accounts.

Kaspersky’s anonymised data shows that such emails started reaching users on 14 December 2024, with complaints coming from organisations all over the world, including the Middle East, Turkiye and Africa.

By examining the “From” field in the email it can be seen that the domain does not belong to Facebook. According to Kaspersky data the emails that this campaign used were sent from different domains.

The link in the email redirects users to Facebook Messenger. On Messenger, the account posing as Facebook’s support team appears legitimate, creating a false sense of trust.

There is an indication that this is a fan page, but it is easy to miss in a situation of high stress after being accused of spreading illegitimate content.

This scheme stands out for its sophistication. Unlike earlier scams that accused users of copyright violations and directed them to respond via email, this approach simulates internal communication on the Facebook platform itself.

“In 2025, we anticipate a rise in attacks leveraging social engineering and user trust in major platforms. Scams like this are becoming more sophisticated as attackers strive to mimic official services closely.

“Users must remain vigilant, verify the authenticity of messages, and avoid clicking on suspicious links. We strongly advise users not to engage with suspicious accounts and to activate additional security measures, such as two-factor authentication.

“If you receive such an email, report the incident to Facebook’s support team and update your passwords immediately if any information has been compromised,” comments Andrey Kovtun, Email Threats Protection Group Manager at Kaspersky.

 

 


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