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Strengthening Financial Services Industry with Cognitive Security

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Is it possible for any organisation to fight cybercrime without the aid of artificial intelligence or machine learning, especially, for those with complex systems like the financial institutions?

This article is more or less focused on the financial services industry, especially, the banking sector, for two main reasons.

First, I believe that when it comes to technology adoption in Nigeria, the banks are really at the forefront and secondly, I was invited to join some bank executives for a one day exposition themed, “Defense In-depth with cognitive security”, organised by ActivEdge Technologies and IBM, both of which are leaders in the space.

“All over the world, forward thinking organisations are continuously exploring means of improving their security and defense posture in a way that meets the operational data protection and privacy requirements,” said George Agu, CEO, ActivEdge Technologies Limited. The wealth of information under the custody of financial service firms is huge and includes user information, transactional data and data created from security, network and endpoint devices that can help uncover security breaches/attacks. But, how can security teams make sense out of this massive amount of data, so as to be able to recognize security threats as they emerge and provide quick remediation?

According to IBM, “Cognitive systems shine a light into data that has been dark to organizational defenses until now — uncovering new insights, patterns and security context, never seen before.”

From all indications, cognitive security, certainly provides effective tools that will allow the financial service industry in Nigeria to better explore structured and unstructured data, intelligence, security, financial information, analysis and much more, to mitigate security threats.

Many IT and other professionals also see it as a technology that can improve the efficiency of security analysts, relieving them from the usual everyday tasks and making them more focused on what is important.

Typically, a bank’s data security or network security analyst has a complex job of finding and stopping advanced threats before they do damage and/or steal valuable assets and can only attend to a little above 10 security incidences in a day, out of about 50 security incidences cases received daily.

Incidence Response, (IR), is meant to be handled immediately, no matter the number received per day, but with the above, one can deduce that a number of security threats may remain unattended to.

The bank might decide to deploy more workforce to see that the incidence response time is increased, but not without incurring additional cost, coupled with the difficulty of finding the right level of skills. All these issues could be adequately handled and effectively managed, if cognitive systems are deployed in the banks and other larger corporations.

Obviously, the above scenario shows the increased possibilities of vulnerabilities and the need to protect the entire categories of vulnerabilities, as opposed to chasing individual attacks.

The financial sector needs to understand the value of intelligence and integration capabilities that leverage cognitive analytics to collect, learn and make sense of massive amounts of real-time data flow and lessons learned from security professionals to prioritize security threats, detect high-risk threats in real-time and provide guidance on remediation.

According to the Deputy Governor, Operations, Central Bank of Nigeria, (CBN), Nigerian Deposit Money Banks, DMBs, lost N2.19 billion to fraudsters through electronic channels in 2016 fiscal period, recording about 19,531 fraud cases the same year as against 10,743 recorded in 2015. The CBN, in its contribution, appear to be actively involved in promoting a secure and efficient payment system, providing operation and implementation guidelines that can facilitate the ongoing initiatives, as well as sensitising deposits banks.

Deposit banks on the other hand, are on a continuous journey to improve banking services and payment transactions, making them more user friendly and efficient with the use of interactive technology innovations.

This, however, has not nipped the cases of electronic fraud in the bud, due to obvious lapses that accompany such technologies.

As a matter of fact, for the financial service industries to effectively deal with electronic payment fraud cases caused by security lapses, more creativity is needed to help detect threats faster, understand its scope and apply appropriate remediation in near real-time.

By the nature of what I do, I interact with both the public and private sector and some people often argue that Nigeria is not ripe for a major cyber-attack because, most of our data are largely offline.

It is an argument that I find amusing, but the average financial institution offering real time, 24/7, financial services approaches the situation differently, thus, it is quite instructive as George Agu, CEO, ActivEdge Technologies drives home the point that “No technological innovation has proven to be as efficacious, reliable and resilient at fighting security threats and breaches as cognitive security, which uses data mining, machine learning, natural language processing and user behavioural analysis, to smartly block attacks that continue to elude traditional security technologies, such as those exploiting zero-day vulnerabilities. In just a few years, this method has proven to be stronger, adapting quickly to attacks as they change and proactively detecting and preventing, even, the most sophisticated threats.”

Security is paramount for the financial service industry as well as organisations in other sectors of the economy.

All sectors house data and critical information that are relevant for all stakeholders involved. We should not be victims of loss of large quantum of money as a result of security vulnerabilities, when there are solutions that can help us stay protected.


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E-Business

NITDA Takes Over National Digital Architecture System

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Nigeria has taken a major step toward strengthening its digital governance framework as the National Information Technology Development Agency (NITDA) officially assumes control of the Nigeria Government Enterprise Architecture (NGEA) infrastructure.

NITDA Takes Over National Digital Architecture System

The handover ceremony held in Abuja, marks the culmination of a high-level partnership with the Korea International Cooperation Agency (KOICA).

This transition signals a shift from fragmented IT projects to a unified, disciplined approach to national digital investment.

The NGEA initiative forms a core part of the e-Government Masterplan 2.0 (Ne-GMP 2.0), aimed at establishing a unified and structured approach to managing government IT investments and digital resources.

The framework is designed to ensure that technology deployment across public institutions aligns with national priorities while improving efficiency and accountability.

With the system now operational, government agencies are expected to adopt more integrated digital processes, allowing seamless data sharing and interoperability.

This is anticipated to reduce duplication, strengthen risk management, and translate policy objectives into measurable digital outcomes.

Over the past two and a half years, Nigerian technical experts worked closely with their Korean counterparts to develop the architecture framework, create reference models, and execute pilot programmes in key institutions.

These include the National Identity Management Commission, Nigeria Customs Service, Nigeria Immigration Service, and NITDA.

Officials say the NGEA represents a shift from fragmented digital efforts to a more coordinated, citizen-focused system.

The infrastructure is hosted by Galaxy Backbone Limited, providing a secure and reliable platform for nationwide deployment.

Looking ahead, NITDA is expected to work with government stakeholders to expand and sustain the system, while the Federal Ministry of Communications, Innovation and Digital Economy will provide policy guidance to ensure its adoption across the country.

 

 


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FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  – Minister

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Bosun Tijani, minister of Communications, Innovation and Digital Economy, has said the government is shifting focus from expanding access to ensuring “meaningful connectivity” that drives economic growth and inclusion.

FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  - Minister

Bosun Tijani, minister of Communications, Innovation and Digital Economy

The minister made the statement on Friday while addressing stakeholders at the inauguration of board members of the Universal Service Provision Fund (USPF) in Abuja.

He said that although Nigeria had made significant progress since the introduction of GSM services, millions of people, particularly in rural and underserved communities, remain either unconnected or unable to fully benefit from digital services.

Dr Tijani highlighted ongoing investments in digital infrastructure, including plans to deploy 90,000 kilometres of fibre optic network and nearly 4,000 telecom towers nationwide.

He said initiatives under the USPF had improved access through projects such as rural connectivity and digital facilities in schools but stressed that the next phase must prioritise effective usage.

“It is not enough to connect a community. We must ensure that schools can teach with digital tools and that small businesses can access market opportunities,” he said, citing a pilot project in the Kura community where connectivity has enhanced access to communication, education and healthcare.

Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC) also called for a shift towards meaningful connectivity, noting that while data usage had grown significantly, it remained concentrated in urban areas.

According to him, recent data shows that telecom usage has increased by about 160% over the past two years, largely driven by urban demand.

“When we drill down, we see that a lot of that growth is actually in urban centres. So, the gap between those who are not connected or not meaningfully connected is growing,” he said.

Dr Maida added that the trend underscored the need for the USPF board to intensify efforts to bridge both access and usage gaps across the country.

Both officials emphasised the importance of collaboration, sustainable investment models and improved digital literacy to ensure that connectivity translates into real economic benefits for Nigerians.

 

 


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Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

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A jury in Los Angeles has found technology companies, Meta and Google liable for contributing to a young woman’s social media addiction, in a case being described as a landmark ruling.

Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

The 20-year-old woman, identified only as Kaley, argued that she became addicted to Google’s YouTube and Meta’s Instagram from an early age due to their attention-driven design features.

According to her testimony, she began using YouTube at the age of six after downloading the app on her iPod Touch to watch videos about lip gloss and online games.

Kaley told the court that she joined Instagram at nine, bypassing parental restrictions put in place by her mother, and spent extended periods on social media.

The trial, which lasted about a month, with arguments and evidence from both sides.

Jurors also heard testimony from Mark Zuckerberg, chief executive, Meta and Adam Mosseri, Instagram head.

However, Neal Mohan, YouTube chief executive, did not testify.

The jury found that the companies were negligent in the design of their platforms and failed to adequately warn users about potential harms. Meta and Google were ordered to pay the woman $3 million in damages.

Jurors also recommended additional punitive damages, including $900,000 against YouTube and $2.1 million against Meta, according to company spokespersons.

The jury apportioned 70 per cent of the responsibility to Meta and 30 per cent to YouTube.

Kaley was present in the courtroom when the verdict was delivered, alongside parents of other teenagers who say they were harmed by social media use. Both companies said they plan to appeal the decision.

“We respectfully disagree with the verdict and will appeal. Teen mental health is profoundly complex and cannot be linked to a single app. We will continue to defend ourselves vigorously as every case is different, and we remain confident in our record of protecting teens online”, a Meta spokesperson said.

José Castañeda, Google spokesperson, said the case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site.


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