Democratizing Fraud Prevention for Microbusinesses in Nigeria: How AI Can Power a More Secure Financial Future

By Adepeju Deborah Bello

Fraud Analyst | Researcher | Advocate for Digital Trust

Derby, UK – 2025

In an era of rapid digital transformation, financial crime has grown increasingly complex and pervasive. While large financial institutions often deploy sophisticated systems to safeguard assets, microbusinesses, particularly, in developing economies remain vulnerable, under-resourced, and largely unprotected.

My research focuses on bridging this glaring protection gap using artificial intelligence (AI). As a PhD researcher at De Montfort University, Leicester, I am investigating how AI-driven solutions such as machine learning, anomaly detection, and behavioural analytics can be localized and scaled to serve microbusinesses in Nigeria’s financial service value chain.

The Microbusiness Dilemma: A Growing Threat, Limited Defences

Micro and informal businesses represent over 80% of enterprises in Nigeria. They are the heartbeat of the local economy and essential drivers of employment and innovation. However, their increasing adoption of digital platforms exposes them to sophisticated threats like:

Social engineering and phishing attacks

Identity theft and impersonation

Fake payment confirmations and mobile wallet fraud

Insider abuse in small lending operations

Yet, these businesses often lack fraud analytics tools, compliance infrastructure, or technical know-how. The result is devastating, not just financially, but in lost trust, reputational damage, and systemic exclusion.

AI as a Tool for Financial Inclusion and Protection

In my professional role as a fraud analyst at Barclays UK, I engage daily with enterprise-grade fraud detection systems such as Falcon, Celonis, and Cybercrime Portals. These tools have dramatically improved fraud visibility and response time in high-risk environments.

However, my PhD. research asks a critical question:

How can similar AI techniques be adapted for low-resource, high-impact environments like Nigeria’s informal economy?

Initial findings suggest that even lightweight, open-source AI models, when trained on localised data, can provide real-time pattern recognition, fraud flagging, and user verification with minimal infrastructure. My research aims to:

Develop an AI framework tailored for mobile-enabled microbusinesses

Evaluate behavioural biometrics as a layer of identity assurance

Explore federated learning models to ensure data privacy

Propose a roadmap for cost-effective fraud risk solutions at scale

From Research to Real-World Impact

This work is more than academic. It is anchored in practice, community, and policy. I aim to create a bridge between grassroots economic actors and frontier technologies. By empowering local entrepreneurs with intelligent fraud protection, we can enhance digital trust, reduce transaction friction, and unlock broader financial inclusion.

Selected Publications and Technical Work

I have authored and co-authored peer-reviewed papers and whitepapers that explore intersections between AI, fraud risk, and digital compliance, including:

“AI-powered Fraud Detection in Digital Banking: Enhancing Security through Machine Learning”

“Enhancing KYC and AML Compliance Using Blockchain”

“Cybersecurity and Data Protection in the Supply Chain: AI’s Role in Protecting Sensitive Data”

“Enhancing Financial Cybersecurity in Cloud Engineering: A Systematic Review”

These publications reflect my commitment to research with practical relevance, bridging regulatory needs, market realities, and cutting-edge innovation.

Advocacy, Recognition, and Industry Engagement

I am a certified member of leading professional bodies, including ACFE, ISACA, (ISC)², and CPN. Through mentorship, speaking engagements, and collaboration with women-in-tech initiatives, I continue to advocate for greater representation in cybersecurity and fintech.

In a sector historically underrepresented by African women, I aim to be a role model and a resource for aspiring professionals across both continents.

Next Steps: A Call for Collaboration

My research at De Montfort is a stepping stone toward broader implementations, from partnerships with Nigerian regulators and fintechs to global research collaborations. I invite: Academic institutions to co-investigate localized AI models. Policy actors to shape regulatory frameworks for fraud resilience. Fintech firms and startups to prototype solutions with real-world applications.