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AI Security Audit – CryptoVault Nigeria Limited (Cryptocurrency Exchange)

This project reflects the type of work I support in real-world engagements. The documentation consolidates insights from that experience alongside my ongoing self-directed study. All materials use synthetic data—no client information is reproduced—and the templates are either self-developed or sourced from open-source resources.


Contributed to an AI security audit for a cryptocurrency exchange operating high-risk AI systems (KYC verification, transaction monitoring, sentiment analysis). The assessment evaluated governance, model integrity, data security, and regulatory compliance against ISO/IEC 42001:2023, NIST AI RMF, and Nigeria Data Protection Act requirements to determine AI risk posture and regulatory readiness.


Approach

  • Administered a structured AI Security Audit Checklist (sheet 1) covering ten domains, including governance, model lifecycle, adversarial resistance, and supply chain risk, with responses mapped to ISO, NIST, and OWASP frameworks.

  • Generated a detailed Document Evidence Checklist (sheet 2) to track required artefacts across all audit domains, identifying gaps in policies, technical controls, and compliance documentation.

  • Performed evidence-based testing documented in the AI Security Audit Report, including governance framework review, model versioning analysis, data provenance verification, and adversarial testing capability assessment.


Key Findings & Recommendations

  • No AI Governance Framework (Critical): No approved AI policy, ethical principles, or formal roles existed; decisions made ad-hoc. Recommendation: Approve formal AI Governance Policy and establish AI Steering Committee within 30 days.

  • No Adversarial Testing (Critical): Transaction monitoring AI never tested against evasion or poisoning attacks; fraudsters could bypass detection. Recommendation: Implement adversarial robustness testing using dedicated tooling before next deployment cycle.

  • Undocumented Third-Party Models (Critical): Sentiment analysis LLM imported from Hugging Face with no security review or due diligence. Recommendation: Complete third-party model risk assessments and establish formal approval process for all external models.

  • Incomplete Data Provenance (High): External sentiment datasets lacked licensing documentation; poisoning risk unmanaged. Recommendation: Document complete provenance for all training data and establish data integrity verification controls.

  • No AI Incident Response (High): General IR plan existed but lacked AI-specific playbooks for model poisoning or adversarial attacks. Recommendation: Develop and test AI incident response playbooks within 90 days.


Outcome & Reflection

The audit revealed a critical disconnect: CryptoVault invested heavily in AI infrastructure but neglected governance and AI-specific security controls. With 43% overall compliance, the organisation faced foreseeable regulatory enforcement from SEC Nigeria, NDPC, and NFIU. The highest risks stemmed from absent governance, risk assessments, and adversarial testing, not technical failures.


Linked Project Documents

AI Security Audit –(Cryptocurrency Exchange)

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Identified critical AI governance gaps: no adversarial testing, undocumented third-party models, and missing incident response. Delivered roadmap to secure high-risk KYC and transaction monitoring systems against evolving threats.

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