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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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Jumia Nigeria Records Strong Q1 2026 Growth as Technology-Led Strategy Drives Market Expansion

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Jumia has announced strong first-quarter 2026 performance results, with Nigeria emerging as one of the company’s standout growth markets across Africa, reinforcing the country’s position as a critical driver of the company’s long-term expansion strategy.

According to the company’s Q1 2026 financial results released May 7th, 2026, Nigeria recorded a 42% year-on-year increase in physical goods Gross Merchandise Value (GMV), making it one of Jumia’s strongest-performing markets during the period.

Commenting on the performance, Temidayo Ojo, CEO of Jumia Nigeria, said, “Nigeria continues to demonstrate the strength and resilience of its digital commerce ecosystem. The growth we recorded in Q1 reflects increasing consumer confidence, stronger engagement across our platform, and our continued investment in technology, logistics, and customer experience.”

“We are seeing more Nigerians embrace e-commerce not just for convenience, but as a trusted part of everyday life. Our focus remains on building a platform that is more accessible, more reliable, and more relevant to the evolving needs of Nigerian consumers and sellers,” Ojo further mentioned.

The company attributed its broader growth trajectory to disciplined execution, operational efficiency, and increased deployment of technology and AI-driven systems across its operations.

According to the report, Jumia leveraged artificial intelligence and automation across operations, finance, customer support, cybersecurity, seller management, logistics, and technology teams to improve service quality while reducing operational costs company-wide.

The company also noted that technology and content expenses declined year-on-year due to ongoing headcount optimisation and savings from renegotiated technology contracts, while operational leverage continued to improve. They further highlighted increased use of AI tools among its technology teams, alongside automation in call centres and operational systems, as part of efforts to scale sustainably while improving efficiency across African markets.

Across the platform, Jumia reported significant gains in customer retention and marketplace engagement. Quarterly Active Customers reached 2.5 million, while physical goods orders climbed to 5.9 million in Q1 2026.

The company also expanded usage beyond major urban centres, with 62% of total orders now coming from secondary cities and upcountry regions, emphasising the growing reach of digital commerce across Africa.

Despite global economic pressures, including rising memory chip and CPU prices and supply chain disruptions linked to ongoing Middle East conflicts, the company reaffirmed its path toward profitability. Jumia stated that it remains on track to achieve Adjusted EBITDA breakeven and positive cash flow in Q4 2026, with full-year profitability targeted for 2027.


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Lagos Captures over 6.4m Residents in LASRRA Database

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Lagos State government has disclosed that more than 6.4 million residents have so far been captured under the Lagos State Residents Registration Agency (LASRRA) exercise as part of efforts to strengthen governance, planning and service delivery across the state.

Lagos Captures over 6.4m Residents in LASRRA Database

Tobosun Alake, commissioner for Innovation, Science and Technology,  revealed this during the ongoing ministerial press briefing marking the second-term anniversary of Governor Babajide Sanwo-Olu.

According to Alake, a total of 6,465,667 residents have been enrolled in the residency database, comprising 4,058,333 adults and 2,407,224 children.

The commissioner described the Lagos Identity Card Project, popularly known as LAG ID, as a major component of the state government’s strategy to improve governance efficiency and public service delivery under the THEMES development agenda.

He explained that the initiative was designed to provide government with a reliable and comprehensive population database capable of supporting planning, policy implementation and effective allocation of resources.

Alake noted that the agency operates an open framework that allows government institutions and private sector partners to independently participate in the system while leveraging a centralised data-sharing infrastructure.

According to him, the arrangement creates opportunities for partnerships, improved information management and enhanced value for both residents and businesses operating within Lagos.

The commissioner added that the initiative would further expand opportunities linked to the Lagos Residents Card and deepen the state’s digital transformation drive.

Speaking on security and digital enforcement, Alake disclosed that the state’s Safe City initiative had significantly increased digital traffic enforcement across Lagos.

He revealed that about 86,000 traffic violations were tracked within a few months, bringing the cumulative figure to about 737,000 recorded cases.

On technology-driven governance, the commissioner highlighted the role of Art and Technology Lagos, an annual conference organised by the Eko Innovation Centre in collaboration with the Lagos State Government.

According to him, the conference brings together technology stakeholders, policymakers, innovators and government officials to drive conversations around the development of a smarter and digitally connected Lagos.

Alake also stated that Lagos currently leads the country in data protection compliance, revealing that the state now has 109 certified data protection officers responsible for ensuring compliance and safeguarding residents’ data.

He explained that the government’s digital platforms now generate robust analytics that help authorities understand public interaction with online services.

“With technology, the state government has been able to know that an average 250,000 visit monthly,” he said.

“When we see our daily visitors on our online platform we are able to tell how many people are visiting our platforms, what they are clicking on and what they are using.

“Some of the services they are related with so we have backend analytics to tell us the number of visitors. I think the back end analytics is very robust and we respond to questions very quickly,” Alake added.

The commissioner further disclosed that the state had completed about 3,000 kilometres of fibre optic duct infrastructure extending to areas such as Alimosho, Ikorodu and Ibeju-Lekki.

He added that the government was planning to expand the infrastructure to 5,000 kilometres through partnerships with private sector investors.

 


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Firm Shares Insights into Ransomware Trends and Tactics @ International Anti-Ransomware Day-2026

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On International Anti-Ransomware Day, May 12, Kaspersky shares a report with an overview of ransomware trends that marked 2025 and insights into what the threat landscape holds in 2026.

According to Kaspersky Security Network, in 2025 Latin America had the highest share of organisations with ransomware attacks detected (8.13%), followed by the Asia-Pacific region (7.89%), Africa (7.62%), Middle East (7.27%), the Commonwealth of Independent States (CIS, 5.91%) and Europe (3.82%).

The report highlights the rise of “encryption-less” extortion attacks, the use of post-quantum cryptography by ransomware groups, and the persistent use of Telegram channels by cybercriminals to distribute compromised data sets and credentials.

Despite a slight decline in the overall share of organisations attacked by ransomware in 2025 compared to 2024, users remain at significant risk as attackers industrialise their operations, automate intrusion methods, and increasingly focus on stealing and leaking sensitive data rather than simply encrypting systems.

One of the trends in 2025 is the continued rise of endpoint detection and response (EDR) “killers” – tools specifically designed to disable endpoint security solutions before executing the malware itself. EDR killers have become a standard component of attacks, which means more deliberate and methodical intrusions.

Researchers also noted the emergence of ransomware families adopting post-quantum cryptography standards – this was predicted by Kaspersky previously. The development signals a concerning shift toward encryption methods that could resist future quantum computing decryption attempts.

The role of Initial Access Brokers (IABs) – cybercriminal intermediaries that sell pre-compromised corporate access through underground forums and messaging platforms – is growing. RDWeb portals (websites through which devices can be controlled remotely) are increasingly targeted as ransomware groups continue to industrialise attacks through “Access-as-a-Service” operations. As a result, the barrier to launching ransomware attacks declines.

Telegram channels and dark web forums continuously function as platforms for the distribution and for the sale of compromised data sets and accesses including those that were obtained as a result of ransomware attacks.

A major underground forum, RAMP, which also functioned as a platform through which threat actors advertised their ransomware services and published service‑related updates, got seized by authorities in January 2026.

Another underground forum, LeakBase, where malicious actors distributed exfiltrated and compromised data, was seized in March 2026. However, while law enforcement agencies are actively shutting down dark web platforms and ransomware data leak sites, similar portals may appear over time.

Active groups

Among the most active ransomware groups in 2025 based on data leak sites, Kaspersky identified Qilin as the dominant ransomware-as-a-service (RaaS) operator following RansomHub’s seizure of operations. Clop ranked as the second most active group, with Akira in the third place.

While several major ransomware groups stopped operation in 2025, new actors emerge. Looking at 2026, the Gentlemen is one of the most important new ransomware actors due to the group’s rapid growth, structured operations, and increasing focus on data-centric extortion. The group may include attackers formerly associated with other major ransomware operations.

The Gentlemen exemplify a broader shift in the ransomware ecosystem away from chaotic, high-noise campaigns toward scalable, business-like extortion models focused primarily on stealing sensitive data and leveraging reputational and regulatory pressure rather than relying solely on disruptive file encryption.

“Ransomware has evolved into a highly organised ecosystem focused on monetising stolen data, disabling defences, and scaling attacks with business-like efficiency. Threat actors are quickly adapting, weaponising legitimate tools, exploiting remote access infrastructure, and even adopting post-quantum cryptography years earlier than many expected.

“The purpose of Anti-Ransomware Day is to raise global awareness about the threats posed by ransomware and to promote best practices for prevention and response, and we urge all users to stay secure, set up layered defences, invest in backups and boost cyberliteracy levels to counter attacks,” comments Fabio Assolini, Lead Security Researcher at Kaspersky GReAT.

On Anti-Ransomware Day and beyond, Kaspersky encourages organisations to follow these best practices to safeguard from ransomware:

  • Enable ransomware protection for all endpoints. There is a free Kaspersky Anti-Ransomware Tool for Business that shields computers and servers from ransomware and other types of malware, prevents exploits and is compatible with already installed security solutions.
  • Always keep software updated on all the devices you use to prevent attackers from exploiting vulnerabilities and infiltrating your network.
  • Focus your defence strategy on detecting lateral movements and data exfiltration to the Internet. Pay special attention to outgoing traffic to detect cybercriminals’ connections to your network. Set up offline backups that intruders cannot tamper with. Make sure you can access them quickly when needed or in an emergency.
  • Companies from non-industrial sector can protect themselves by installing anti-APT and EDR solutions that enable capabilities for advanced threat discovery and detection, investigation and timely remediation of incidents. Organizations can also provide their SOC teams with access to the latest threat intelligence and regularly upskill them with professional training.

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