• About
  • Advertise
  • Careers
  • Contact Us
Tuesday, June 24, 2025
  • Login
No Result
View All Result
NEWSLETTER
Tech | Business | Economy
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
ADVERTISEMENT
Home Features Guest Writer

Leveraging AI and Machine Learning for Fraud Detection and Prevention in Fintech Platforms

Article Written by Chidi Udeze

by Techeconomy
December 10, 2024
in Guest Writer
0
AI and Machine Learning
Chidi Udeze is a Senior Product Manager with a strong focus on cloud solutions, API infrastructure, and digital product innovation

Chidi Udeze is a Senior Product Manager with a strong focus on cloud solutions, API infrastructure, and digital product innovation

UBA
Advertisements

Safeguarding against fraud and guaranteeing transaction security have become very crucial in today’s evolving financial markets.

This is especially valid in underdeveloped nations, where financial fraud can have lasting effects on the financial capability of individuals as well as spread to the Nation.

In my position as a Senior Product Manager at Nomba, I have taken the charge to integrate machine learning algorithms, balance, and approaches by promoting a seamless user experience and high level of security.

Developing economies usually face a lot of challenges when it comes to transactional fraud. The rapid integration of digital financial services, coupled with less comprehensive regular compliance creates enough room for fraudulent activities.

Custom base systems for fraud detection, while important, often fail to address the robust and evolving nature of modern fraud schemes.

This is where AI and machine learning takes an important role, offering dynamic and adaptive solutions that learn, adopt from to resist new threats in real time.

AI and machine learning algorithms have the ability of analysing large amounts of transaction data, identifying patterns and irregularities seen as fraudulent activity.

One of the most important methods is supervised learning, where algorithms are instructed on large datasets consisting of legitimate and fraudulent transactions. By understanding the nature of fraudulent characteristics, these models can identify and predict the chance of fraud in new transactions.

Another robust method is unsupervised learning, which does feed on labelled data. Instead, these algorithms identify oddity and unusual patterns that digress from the usual. Methods such as clustering and anomaly identification are usually needed in locating new types of fraud that have not been detected previously.

Deep learning is a subgroup of machine learning, which further promotes fraud detection enhancement. Neural networks, distinctly convolutional and recurrent neural networks, can apprehend complex relationships and reliability in transaction data.

These models can not only disintegrate individual transactions but train of transactions, identifying signs of fraud that might have been avoided by other techniques.

In the fintech environments, AI and machine learning are used across various layers to enhance security. The most important use case is in real time transaction tracking.

By continuously analysing transactions as they happen. AI systems can issue warnings over suspicious activities immediately, allowing rapid response. For example, if a user’s spending pattern suddenly changes from their usual typical pattern, the system can shut down transactions for the meantime and ask the user for additional information.

Machine learning algorithms can examine biometric patterns, for example facial recognition or fingerprints to ensure that the user initiating a payment is truly authorised. Behavioural biometric, which appraises certain user behaviours like type speed and mouse interactions, add an extra layer of security, making it extremely hard for internet fraudsters to imitate the real  users.

Credit scoring is also promoted through AI and machine learning. In several developing economies, traditional credit data may be limited or totally not in use.

Machine learning models can provide other approaches to data sources, such as social media activity, and mobile phone usage patterns to generate more detailed credit scores.

One of the biggest challenges in deploying AI and machine learning to identify anomalies is achieving the perfect balance between user experience and security.

Excessive security measures can lead to untrue indications where real transactions are identified as scam, causing frustration for users. On the other hand, fair measures may fail to resist fraudulent activities,  undermining trust in the platform.

I discuss extensively on the importance of continuous model training and approval to maintain this balance. Machine learning models should be updated on a regular basis with recent data to modify emerging fraud patterns while reducing false alarms. User feedback plays an important role in this process, providing a clear understanding that assists in remodifying the models.

Moreover, open communication with users about security adoption and the reasons for transaction verifications can promote acceptance and trust. Providing seamless authorization alternatives such as biometric authentication, can enhance security without placing extra resistance to the user experience.

Adopting AI and machine learning for fraud identification and protection in fintech is not just a technological breakthrough but a requisite in the fight against transaction fraud, most importantly in developing economies.

The dynamic and adaptive nature of these tools provides comprehensive solid solutions that custom methods cannot meet.

By navigating specific use cases and algorithm techniques, and by deliberately balancing user experience with security, fintech platforms can safeguard their users and promote trust in digital financial services.

As in the fintech industry, my insights at initiatives at Nomba are making waves for a secure fintech ecosystem.

Feedback

  1. Add zone’s switch capability of auto reversal of failed transaction as one of the ways to curb transaction fraud
  2. Add zone’s switch as a blockchain technology and/or DeFi which promotes security in fintech industry

More about The Writer:

Chidi Udeze is a Senior Product Manager with a strong focus on cloud solutions, API infrastructure, and digital product innovation. Throughout his career, he has successfully led high-impact projects in the fintech and technology sectors, driving efficiency and growth. Chidi excels at designing and implementing strategic solutions that enhance user experiences, streamline operations, and deliver substantial revenue growth. His leadership in securing key partnerships and fostering digital transformation has made significant contributions to the companies he’s worked with. Chidi has a deep technical background in cloud computing, SaaS technologies, and product management, positioning him as a leader in the tech space.

Loading

Advertisements
MTN ADS

0Shares
Tags: Chidi UdezeCredit scoringmachine learningNomba
Techeconomy

Techeconomy

Next Post
NITDA logo

NITDA Needs Your Input to Proposed National Digital Skills Strategy

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

MTN Nigeria logo

MTN Nigeria Paid N3.5 trillion in Taxes, Levies; N1 trillion More than N2.5 trillion Paid as Dividends in 20 Years

3 years ago
Galaxy Backbone receives PCI DSS Recertification

Galaxy Backbone Attains PCI DSS Recertification

5 months ago

Popular News

    Connect with us

    • About
    • Advertise
    • Careers
    • Contact Us

    © 2025 TECHECONOMY.

    No Result
    View All Result
    • News
    • Tech
      • DisruptiveTECH
      • ConsumerTech
      • How To
      • TechTAINMENT
    • Business
      • Telecoms
      • Mobility
      • Environment
      • Travel
      • StartUPs
        • Chidiverse
      • TE Insights
      • Security
    • Partners
    • Economy
      • Finance
      • Fintech
      • Digital Assets
      • Personal Finance
      • Insurance
    • Features
      • IndustryINFLUENCERS
      • Guest Writer
      • EventDIARY
      • Editorial
      • Appointment
    • TECHECONOMY TV
    • Apply
    • TBS
    • BusinesSENSE For SMEs

    © 2025 TECHECONOMY.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Translate »
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.