A new report by PricewaterhouseCoopers has urged stronger collaboration between banks and telecom companies to combat AI-driven fraud. The firm warned that artificial intelligence is rapidly transforming fraud tactics across the telecommunications sector. Consequently, criminals now automate scams and execute them faster than before.
The report, titled “AI’s Dual Role in Telecom Fraud,” explains that artificial intelligence presents both risks and solutions. On one hand, cybercriminals exploit AI tools to launch sophisticated attacks. For instance, fraudsters now use deepfake technology to impersonate victims and deceive targets. As a result, fraudulent schemes can expand quickly across digital platforms.
Globally, telecom fraud caused losses estimated at $38.95 billion in 2023. This figure highlights the growing financial threat facing telecommunications providers. In Nigeria, the situation also remains concerning. According to the Nigerian Communications Commission, Nigerians lost about ₦12.5 billion to telecom-related crimes between 2019 and January 2023.
Meanwhile, digital banking and mobile money platforms have increased links between telecom networks and financial services. Because of this integration, fraud incidents often spread across multiple digital systems. Consequently, both telecom operators and financial institutions face regulatory scrutiny and declining customer trust.
However, telecom companies possess vast network and customer data that can help detect fraud. By deploying AI tools, operators can identify suspicious call patterns and unusual activity. For example, machine learning models analyse datasets to detect irregular call durations or abnormal call frequencies.
Additionally, some telecom providers now use AI-powered spam detection systems. These tools analyse behavioural signals to identify fraudulent messages in real time. Therefore, companies can block suspicious activity before it causes significant financial losses.
Despite technological progress, PricewaterhouseCoopers stressed that collaboration remains essential. Banks and telecom firms must share intelligence and real-time threat data. Furthermore, regulators such as the Central Bank of Nigeria should strengthen frameworks that protect consumers while encouraging innovation.
