The rapid digitization of microfinance, driven by the shift to mobile platforms and agent networks, has opened up unprecedented opportunities for financial inclusion. However, it has also introduced new and sophisticated fraud risks that can threaten the financial stability of microfinance institutions (MFIs) and erode client trust. Traditional, manual fraud detection methods are no longer sufficient to combat modern threats like synthetic identity fraud, account takeovers, and social engineering scams. Fraud detection in microfinance tech is a proactive and data-driven approach that leverages technology to identify, prevent, and respond to these evolving threats in real time.

This course is designed to equip microfinance professionals with the strategic and practical skills needed to build a robust fraud prevention framework. You will learn to use cutting-edge technologies like artificial intelligence (AI) and machine learning to analyze data, detect anomalies, and build predictive models that can flag suspicious activities before they cause significant harm. By understanding the common fraud schemes and implementing a multi-layered defense strategy, you will be prepared to protect your institution's assets, safeguard your clients, and ensure the integrity of your digital financial services.

Duration: 5 days

Target Audience:

• Microfinance institution (MFI) managers and executives
• Digital transformation and technology specialists
• Risk management and compliance officers
• Professionals in charge of field operations
• Product managers and innovators in financial services
• Data scientists and analysts
• Cybersecurity professionals
• Internal audit and control staff
• Social entrepreneurs and startup founders

Objectives:

• Master the core concepts of fraud and its unique risks in microfinance.
• Understand the strategic business case for investing in technology for fraud detection.
• Learn how to identify and classify different types of fraud.
• Grasp the role of data and analytics in building a fraud detection system.
• Explore how to use AI and machine learning for predictive fraud models.
• Understand the importance of a multi-layered defense strategy.
• Grasp the legal and ethical considerations of data privacy.
• Learn how to build a fraud response and recovery plan.
• Analyze successful case studies from different regions.
• Develop a strategic roadmap for implementing a fraud detection solution.

Module 1: The Evolving Fraud Landscape

• The shift to digital and its new fraud risks
• Common fraud schemes: synthetic identity, account takeover, and social engineering
• The difference between internal and external fraud
• The impact of fraud on an MFI's financial health and reputation
• The human element in fraud and how to address it

Module 2: The Data-Driven Approach

• The importance of a centralized data repository
• The types of data needed for fraud detection (transactional, behavioral, biometric)
• Using data for risk profiling and scoring
• The role of a management information system (MIS) in fraud detection
• The importance of data quality and governance

Module 3: AI and Machine Learning Fundamentals

• The difference between AI, machine learning, and rules-based systems
• How to use supervised and unsupervised learning for fraud detection
• The role of predictive analytics and anomaly detection
• The importance of model training and validation
• Case studies of AI-powered fraud detection

Module 4: Behavioral and Network Analytics

• Using behavioral biometrics (e.g., typing speed, swipe patterns) to verify identity
• The importance of device fingerprinting
• How to use network analysis to uncover fraud rings
• Identifying unusual patterns and deviations from normal behavior
• The role of geolocation data and IP analysis

Module 5: A Multi-Layered Defense

• The concept of a layered security model
• The role of multi-factor authentication (MFA)
• Implementing real-time transaction monitoring
• The importance of strong cybersecurity and access controls
• The role of ongoing threat intelligence

Module 6: Cybersecurity Best Practices

• The most common cybersecurity threats to MFIs
• The importance of a robust cybersecurity policy
• The role of employee training in preventing phishing and scams
• Implementing secure coding practices and vulnerability testing
• The importance of an incident response and recovery plan

Module 7: Fraud Operations and Investigations

• The role of a dedicated fraud management team
• The process of a fraud investigation
• The importance of a clear and well-documented procedure
• How to manage and respond to a fraud alert
• The role of reporting and analysis to prevent future incidents

Module 8: Legal and Ethical Considerations

• The legal framework for fraud and digital crime
• The importance of data privacy and protection
• The ethical use of client data for fraud detection
• The role of a clear and transparent client communication policy
• The importance of a complaint and dispute resolution mechanism

Module 9: The Partnership Ecosystem

• The importance of partnerships with fintech and regtech companies
• Collaborating with law enforcement and other institutions
• The role of industry associations and information-sharing platforms
• Building a network of trust and collaboration
• Leveraging partnerships for expertise and support

Module 10: The Future of Fraud Detection

• The convergence of fraud detection and credit risk
• The role of blockchain for transparent transactions
• The potential of open banking for fraud prevention
• New trends in social engineering and AI-powered scams
• The future of financial inclusion with enhanced security

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.