Big data analytics to combat cyber fraud in the South African banking sector.

Abstract

Big data refers to data that is “high-volume, high-velocity and high-variety” and being able to process this unstructured data provides unparalleled opportunities and insights. Big data analytics (BDA) allows for the processing of unstructured and semi-structured data and its uses range from providing businesses with a 360 degree view of customers, to fraud detection. This research focused on the application of BDA in cyber fraud prevention. The research aim was to identify how the use of BDA to combat cyber fraud is perceived within the South African (SA) banking sector. The intention of this research was to fill a gap that currently exists in terms of available information on how banks in SA may use BDA to combat cyber fraud. This research made use of a qualitative research paradigm and data was collected through unstructured interviews. A triangulation strategy was used to identify the stakeholder groups and thereafter purposive sampling was applied. The data was analysed and interpreted through thematic analysis. The data analysis revealed that cyber attacks are constantly evolving and while there is great effort being made within the banking sector to keep them under control, banks will never completely eradicate them. SA banks have introduced BDA into the fight against cyber fraud however this is still at an exploratory stage. They are also using BDA in social media and consumer analysis. There is fervour within the banks to further explore BDA in relation to the business as a whole, since they want to leverage BDA across business areas. SA banks must spend more time and effort researching and investigating BDA capabilities if they are to efficiently incorporate BDA into a cyber fraud solution.