By Juliet Umeh

The Chief Executive Officer (CEO) of Nina Jojer, a tech solutions company, Chukwuemeka Ujam, has pushed for the adoption of proactive measures within the Fintech industry to counter fraud and called upon FinTech platforms to prioritise investments in architectural solutions and staff training as preventive measures against fraudulent activities.

Ujam, known for his expertise in both the political and tech sectors, shared these insights during a panel discussion at Moonshot by TechCabal on October 12. The session, featuring Esigie Aguele, CEO of VerifyMe, and Henry Nzekwe, a journalist at WeeTracker, aimed to address the pivotal question, “How do you make your fintech fraud-proof?”

During the discussion, the former member of the House of Representatives discussed the challenge of policy lagging behind technological advancements and suggested a temporary halt in artificial intelligence (AI) development to allow policies to catch up, especially considering the prevalent concerns around privacy and security.

Aligning policies with technological innovations, according to Ujam, especially in areas such as artificial intelligence (AI), is crucial to addressing concerns around privacy and security.

“If we could pause AI development and let policy catch up, we could mitigate concerns around privacy and security issues. The regulatory framework needs to evolve in tandem with technological advancements to safeguard financial activities effectively.” Ujam stated.

Addressing recent patterns of fraudulent activities on FinTech platforms, Ujam pointed out the necessity for businesses to avoid compromising security for cost-effectiveness.

“People within the tech ecosystem often want to cut costs, but security should not be compromised. Investing in approved solutions and constantly assessing vulnerabilities is essential to protecting both individuals and companies from falling prey to fraudulent activities.”

Ujam warned against relying on off-the-shelf solutions that may not be fully vetted and approved, recounting an incident where individuals fell victim to a WhatsApp scam due to a lack of proper security measures.

The former lawmaker also underscored the importance of understanding potential breaches, particularly those involving insider information, as a significant threat. He, however, urged companies to invest in technologies that adapt to evolving threats and emphasised the need for robust security measures and proactive identification and addressing of vulnerabilities.

Discussing market trends, Ujam stated the vulnerability of individuals and companies that prioritise cost over security. He urged FinTech companies to allocate resources to protect against insider information leaks and other breaches.

Addressing the need for a proactive approach, he critiqued the industry’s tendency to be reactionary rather than anticipatory. In response to a question about his main tip for FinTech companies, he urged them to  “invest more in architectural solutions and train your people to come up with solutions,” underscoring the importance of staying ahead of potential threats through continuous innovation and a proactive approach to cybersecurity.