Highlights
- West Africa reported a 22% rejection rate, rising sharply from 12% in 2023, driven by a surge in biometric fraud cases
- Spoofing incidents surged, accounting for 15% of West Africa’s biometric fraud rates, compared to under 5% the previous year.
- Fraud remained stable for most of 2024, with a significant surge in October that continued to rise through the year’s end.
- Fraudulent activities in the region peaked at 10 PM WAT [9 PM GMT]
- Financial sector leads in fraud exposure as digital banks recorded peak fraud attempts at 35% of all biometric and document verifications in 2024, followed by microfinance at 30%.
A new report by Smile ID, identity verification solutions provider, has highlighted critical fraud trends across Africa.
The 2025 Digital Identity Fraud in Africa Report reveals that West Africa recorded the highest number of biometric fraud rates in 2024, driven by a rise in spoof attempts soaring from 15% compared to under 5% in 2023.
This significant increase reflects a growing reliance on biometric verification methods and the sophisticated tactics bad actors employ to exploit vulnerabilities.
The report offers clear, actionable strategies to help leaders safeguard trust, revenue, and operational stability in 2025.
Drawing on anonymised data from over 110 million identity verification checks conducted by Smile ID across Central, East, West, and Southern Africa in 2024, the report highlights ongoing challenges and opportunities.
The widespread adoption of biometric verification over traditional textual methods has significantly strengthened fraud prevention, driving the overall fraud rate during KYC checks down to 25% in 2024 (a 4-percentage-point decrease).
However, this year-over-year progress has prompted fraudsters to develop more sophisticated attack methods targeting biometric systems, resulting in millions of dollars in fraud losses across key African markets.
Despite improvements in KYC processes, overall fraud losses escalated in key African markets.
Nigerian banks reported N42.6 billion in fraud losses in Q2 2024 alone, surpassing the total N9.4 billion losses recorded in all of 2023, according to the FITC.
Smile ID continues to tackle unique threats African businesses face when onboarding users, such as identity farming, insider-assisted account takeovers, and advanced document forgeries.
Key findings from the 2025 Digital Identity Fraud in Africa report also include:
- East Africa reported the highest biometric and document rejection rates at 27%. Central Africa matched West Africa at 22%, while Southern Africa recorded a 21% rejection rate.
- Biometric fraud attempts are steadily increasing, reaching a quarterly average of 16%—the highest recorded in the past three years.
- Authentication attempts showed four times higher fraud rates compared to registration, indicating a significant rise in account takeover risks.
- Across all African regions, fraudulent activities concentrated between 8 PM and 4 AM WAT, peaking at 12 AM WAT.
Speaking on the report, Mark Straub, CEO of Smile ID, said:
“The future of fraud prevention lies in adaptability. While AI provides fraudsters with powerful new tools, it also helps security practitioners harness global intelligence to counter zero-day attacks and automate processes that were once manual.
“Fintech platforms with weak KYC protocols remain the most vulnerable, as these bad actors use identity farming to create fraudulent accounts that conceal the origins of illicit funds. Tackling these vulnerabilities requires collaboration between industries, governments, and technology providers to create a safer digital ecosystem.”
The report’s launch builds on the recent introduction of Enhanced SmartSelfie, an advanced biometric verification technology built to withstand advanced fraud attempts, including deepfakes, AI-generated faces, and replay videos. If paired with a unified approach, African businesses can secure their operations, build trust, and drive economic growth.
Founded in 2017, Smile ID has revolutionised identity verification in Africa, completing over 200 million verification checks by November 2024.
As the continent’s leading provider of digital identity verification, fraud detection, and KYC compliance solutions, the company delivers scalable, Africa-focused tools optimised for real-time onboarding, anti-fraud measures, and AI-driven identity verification.
Backed by investors like Costanoa Ventures and CRE Venture Capital, the company catalyses Africa’s digital economy by enabling businesses, governments, and individuals to build trust in underserved markets.
The full 2025 Digital Identity Fraud in Africa report can be downloaded for free here.
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