Expert urges businesses to blend AI, human oversight in tackling fraud

Folalumi Alaran in Abuja

Cybercrime, tech, trainer and digital security analyst, Olawale Oladoja has called on banks and businesses to strengthen their fraud prevention strategies by combining advanced technology with human expertise.

Olawale, who has trained and worked extensively in fraud detection within the banking sector, said rising digital transactions and increasingly sophisticated cybercriminals require a layered defence system that goes beyond algorithms and firewalls.

The digital security expert explained that machine learning, biometric verification, geolocation tracking, and device fingerprinting are now central to modern fraud prevention.

According to him, automated case management allows flagged transactions to reach analysts instantly enabling swift action.

He warned that scams such as impersonation, social engineering, and invoice interception still demand human judgment.

His words: “It is shocking the amount of fraud that goes on day by day, and it is even more scary because fraudsters learn different ways to breach systems by finding loopholes while preying on the ignorance of individuals.

In a world where digital transactions dominate and cybercriminals operate with growing sophistication, fraud has become one of the most pressing threats to individuals, businesses, and financial institutions.

“It is everywhere in the news with corporations being attacked with phishing attacks, impersonations and individuals being deceived into divulging their information which can be used to defraud them. The good news is that we are not defenceless despite the ever-emerging sophisticated attacks of these fraudsters. Technology, when used properly and ethically, is one of the most powerful tools we have to fight back and it works best when combined with trained human insight.

“We are used to responding when attacks happen, but with the power of technology, we can create preventive tools that can detect issues before they happen, in addition to human oversight that would create awareness through scam Education as well.

“Having worked extensively in fraud analysis and training within the banking industry, I have learned that defeating fraud is not just about setting up firewalls (as it can be breached with more sophisticated fraudsters) and algorithms but it is about creating systems, having highly trained people, and maintaining a good process as all three can work together in harmony.

He recommended a six-step framework for organisations: prevention via authentication and education; detection through real-time monitoring; analysis of behavioural patterns; response by freezing threats; recovery with regulatory collaboration; and continuous system optimisation to adapt to evolving fraud tactics.

While warning that technology alone cannot stop fraud, Olawale noted that while AI-driven systems detect anomalies, issue alerts, and block suspicious activity, scams like impersonation, social engineering, and intercepted invoices still demand the sharp eyes and judgment of trained professionals.

According to him, fraud analysts, interpret context beyond numbers by detecting emotional cues during customer interactions and making judgment calls where systems flag ambiguous cases.

Olawale added that customers often misunderstand fraud prevention measures, becoming frustrated when transactions are delayed or blocked.

He said: “These fraud analysts do a lot of background work which most people don’t understand, especially the customer. Once their payment gets flagged, they are angry without fully understanding the systems put in place to protect them. Not every transaction is fraudulent but it is better to be safe than sorry. I have had customers cry over the phone in appreciation because the system deferred the payment, and I opened their eyes to potential risks which they can’t see while protecting their money.

“The systems were put in place not to prevent them from spending their money but to make sure they get the best service for whatever they want to spend their money on. It could be sending money to a family friend (we want to be sure it is not an impersonator claiming to be a family friend especially with social media spaces being hacked), or making a purchase online, to paying for an invoice (being sure they are dealing with the right person and not a scammer who intercepted it).

“Fraud Analysts or specialists like I love to say, interpret context beyond numbers by detecting emotional cues in a customer’s voice. Fraud analysts make judgment calls on ambiguous cases where systems might be unsure sometimes.

“They conduct investigations and escalate issues to law enforcement or compliance, they provide education and empathy to victims of fraud as well as share experiences through training and coaching of other employees to stay ahead of fraud trends.

“My own experience working and coaching agents in the fraud department has shown that when people understand the “why” behind technology, they use it more effectively and ethically.”

To maximise the combined power of technology and human insight, Olawale recommends a six-step framework which included prevention through multi-factor authentication and public awareness campaigns; detection using real-time monitoring tools; analysis of customer behaviour and device patterns; rapid response by freezing suspicious activity; recovery through partnerships with regulators and law enforcement; and continuous feedback to strengthen systems and train staff.

He stressed that fraud prevention is no longer just a back-office function but a critical part of business strategy.

“The future lies not in choosing between technology and people, but in combining both because let’s face it, both work better hand in hand.

“When trained professionals are equipped with cutting-edge tools and when those tools are guided by experience, empathy, and strategy, surely we are building systems that are not only smart, but also resilient. Human and technology is a formidable force. Fraudsters will continue to innovate. So must we”, he added