Banks, telcos alliance key to tackling rising fraud – PwC

The Central Bank of Nigeria and the Nigerian Communications Commission have been urged to enable deeper data-sharing between banks and telecommunications operators as part of a coordinated push to curb rising digital fraud.

The intersection with financial services is amplifying risks for telecom operators, which now underpin digital payments and banking partnerships. In Nigeria, where about 59 per cent of e-banking customers have fallen victim to scams, telecom providers face mounting pressure as critical infrastructure in the financial system.

A 2026 report by PwC, titled “AI’s Dual Role in Telecom Fraud”, said closer collaboration between banks and telecoms companies could significantly improve the detection of threats such as SIM swap attacks and unauthorised account access, which increasingly cut across both sectors.

The report argued that while telecom operators already deploy sophisticated systems to monitor call data and network activity, these capabilities remain underutilised in supporting financial institutions’ fraud controls. Likewise, banks’ advanced anti-fraud algorithms could help telecom providers better identify suspicious behaviour across mobile networks.

“To make this collaboration effective, there must also be stronger engagement with regulators such as the NCC and the CBN. Improved communication between industry players and government bodies can accelerate the development of clear, responsive regulations that support innovation while safeguarding consumers,” the document stated.

By sharing insights and real-time threat intelligence, both sectors can strengthen their individual and collective defences, PwC noted, pointing to coordinated frameworks in markets such as the UK, Singapore, and Australia.

Global telecom fraud losses were estimated at $38.95bn in 2023, while data from the NCC shows Nigerians lost about N12.5bn to telecom-related financial crimes between 2019 and January 2023.

The push for collaboration comes as fraud schemes grow more complex, driven in part by the rapid adoption of digital banking and mobile-based services such as USSD, which have expanded access but also widened the attack surface for criminals.

Telecom infrastructure has become a critical layer in financial security, particularly as fraudsters exploit weaknesses in identity verification processes. SIM swap fraud, where attackers take control of a victim’s phone number to access banking services, remains a key concern.

Without such alignment, institutions remain cautious about sharing sensitive data, citing compliance risks and uncertainty over privacy obligations, a constraint that continues to limit the effectiveness of joint fraud detection efforts.

Beyond institutional collaboration, the report emphasised the role of consumers, noting that many fraud incidents rely on social engineering tactics. It urged telecom operators to expand customer awareness campaigns, including alerts on emerging scam patterns and guidance on identifying phishing attempts.

At the same time, the growing use of artificial intelligence in fraud detection is introducing new risks. While AI systems can improve monitoring and response times, the report warned they could also be manipulated by attackers through techniques such as prompt injection, potentially exposing sensitive data or bypassing security controls.

To mitigate these risks, telecom companies were advised to adopt responsible AI practices, including regular audits of algorithms, transparent decision-making processes, and the use of representative training data to limit bias.

The report also highlighted the potential for regulators to deploy AI tools to automate compliance checks, enabling more efficient oversight and allowing authorities to focus on high-risk areas.