Smile ID, Africa’s leading identity verification provider, has released its 2025 Digital Identity Fraud in Africa report, exposing evolving fraud tactics and their impact on fintech platforms and digital ecosystems.
Why it matters
Fraudsters are leveraging Generative AI, deepfakes, and insider-assisted schemes to bypass security measures, putting businesses at risk of revenue loss and eroded trust.
By the numbers
- Smile ID analyzed 110 million identity verification checks across Central, East, West, and Southern Africa in 2024.
- The fraud rate during KYC checks fell to 25%—a 4 percentage-point drop—thanks to biometric verification.
- Despite this progress, sophisticated fraud methods targeting biometrics led to millions of dollars in losses.
Regional breakdown
- East Africa: Led in document fraud, with the highest rejection rate at 27%.
- West Africa: Epicenter of biometric fraud, facing a surge in AI-powered spoofing attacks.
- Central Africa: Saw an increase in fraud-related rejections to 22% (+3%).
- Southern Africa: Experienced the sharpest rise, from 9% to 21%, due to fraud linked to outdated ID documents.
The big picture
- Fraud rates were 4x higher during authentication than registration, signaling a rise in account takeovers.
- Attacks peaked between 7 PM and 3 AM GMT, hitting their highest at 11 PM GMT.
What they’re saying
“The future of fraud prevention lies in adaptability,” said Mark Straub, CEO of Smile ID. “While AI gives fraudsters new tools, it also empowers security teams to counter attacks with automation and global intelligence.”
Between the lines
Fintech platforms with weak KYC protocols remain the most vulnerable, as fraudsters exploit identity farming to launder illicit funds.
What’s next
Smile ID recently launched Enhanced SmartSelfie™, a biometric security upgrade to combat deepfakes and AI-generated fraud attempts.
Download the full 2025 Digital Identity Fraud in Africa report.
