A new report by PricewaterhouseCoopers has called on banks and telecommunications companies to strengthen collaboration and share intelligence to combat the rising wave of artificial intelligence-driven fraud.
In the 16-page report titled ‘AI’s Dual Role in Telecom Fraud’, PwC warned that the rapid adoption of AI is transforming the fraud landscape, enabling criminals to automate scams, impersonate victims using deepfake technologies, and execute attacks at an unprecedented scale.
According to the firm, while AI presents new risks, it also offers powerful tools to fight fraud. “AI has tremendous potential to drive positive change across sectors, but it also enables fraudsters to create and disseminate scams quickly and at scale,” the report stated.
PwC noted that the increasing integration of telecom networks with financial services, including mobile money and digital banking platforms, is creating additional vulnerabilities across the ecosystem. When fraud occurs across these interconnected systems, both sectors face regulatory scrutiny and a loss of customer trust.
Globally, telecom fraud losses were estimated at $38.95 billion in 2023, underlining the magnitude of the challenge. In Nigeria, the Nigerian Communications Commission reported that citizens lost about N12.5 billion to telecom-related financial crimes between 2019 and January 2023.
The report stressed that telecom operators are becoming critical infrastructure for digital financial services, making them prime targets for cybercriminals. However, PwC highlighted that telcos also hold a strategic advantage due to their access to vast amounts of customer and network data.
By deploying advanced AI systems, telecom companies can detect suspicious activity patterns, flag unusual call behaviours, and identify fraudulent transactions in real time. AI-powered tools can analyse large datasets to uncover irregular call durations, abnormal frequencies, or activity at odd hours—common indicators of fraud.
In addition, machine learning models trained on historical fraud cases can identify subtle warning signs that traditional systems often miss. Some telecom operators are already using AI-driven spam detection tools that assess hundreds of behavioural parameters to determine whether messages are fraudulent.
PwC further noted that AI can enhance incident response. Through natural language processing and generative AI, organisations can convert complex technical data into simplified reports for regulators, executives, and compliance officers.
Despite these technological advancements, the firm emphasised that technology alone cannot solve the problem. It called for deeper collaboration between telecom operators, financial institutions, and regulators such as the Central Bank of Nigeria to strengthen defences against fraud.
According to PwC, telecom companies possess tools to monitor network behaviour and detect threats like SIM swap fraud, while banks have advanced fraud detection systems that can complement telecom capabilities. By sharing real-time threat intelligence, both sectors can significantly improve fraud detection and response.
The report also pointed to successful international collaborations in countries such as the United Kingdom, Singapore, Australia, and the Philippines, where coordinated efforts have improved fraud prevention outcomes.
PwC concluded that a unified approach involving industry players and regulators is essential to safeguard the growing digital ecosystem while maintaining consumer trust.
