Cyber fraud has become a pressing challenge for financial institutions, threatening not only their bottom line but also customer trust. The Association of Certified Fraud Examiners (ACFE) notes that businesses lose approximately 5 per cent of annual revenue to fraud, emphasising the significant financial impact across industries.
In 2021, global cybercrime costs were estimated at $6 trillion, projected to surge to $10.5 trillion by 2025. This rising threat underscores the need for comprehensive data management to combat fraud effectively.
CEO and Lead Business Analyst, OLUP Limited, Abiola Uwadia, with experience in financial institutions like HSBC and Barclays, plays a crucial role in the fight against cyber fraud. Her expertise in data normalisation and Extract, Transform, Load (ETL) processes enhances the security of customer data, fortifying defences against fraudulent activities.
Data normalisation ensures that databases are organised to minimise redundancy and uphold data accuracy, which is critical for handling sensitive financial information. This structured approach supports the integrity of customer data by standardising and maintaining its consistency. The ETL processes, which involve extracting data from various sources, transforming it for uniformity, and loading it into target systems, enable banks to conduct comprehensive risk assessments and make informed decisions.
As data breaches become more common, protecting customer information is paramount. Uwadia’s methods prioritise maintaining robust data structures that prevent unauthorised access or tampering. IBM’s Cost of a Data Breach Report 2023 highlights that the average cost of a data breach reached $4.45 million, illustrating the serious financial and reputational damage poor data protection can inflict.
Through effective ETL processes and normalised data, financial institutions can monitor transactions accurately and identify suspicious behaviour quickly, ensuring enhanced fraud prevention.
Given the increasing sophistication of cyber fraud, the role of technology is more critical than ever. Emerging tools and technologies provide institutions with new ways to leverage data, enabling them to protect customers more effectively and maintain a proactive stance in combating fraud.
Swift detection plays a crucial role in mitigating damage. A study by the Ponemon Institute found that organisations that contained a breach within 30 days saved an average of $1 million compared to those that took longer.
To strengthen their data security framework, financial institutions benefit from having clear data standards, continuously improving data structures, utilising advanced ETL tools, and monitoring data quality to detect anomalies early, contributing to stronger data management and lower fraud risk.
