Is Generative AI fueling a new wave of fraud in Africa? – IBS Intelligence

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As fraudsters increasingly turn to Generative AI and advanced techniques, digital security in Africa faces a growing challenge. The 2025 Digital Identity Fraud in Africa Report by Smile ID uncovers troubling trends, including biometric spoofing, identity farming, and AI-generated forgeries.
The 2025 Digital Identity Fraud in Africa Report reveals that while fraud prevention methods have evolved, cybercriminals are using AI-powered techniques like deepfakes, identity farming, and biometric spoofing to outmanoeuvre security systems.
Based on anonymised data from over 110 million identity verification checks conducted across Central, East, West, and Southern Africa in 2024, the report highlights both challenges and progress in fraud prevention. The adoption of biometric verification over traditional text-based methods has played a significant role in combating fraud, driving the overall fraud rate down to 25% in 2024—a 4-percentage-point decrease from the previous year.
However, fraudsters have adapted quickly, targeting biometric systems with sophisticated attacks, leading to millions of dollars in fraud losses across key African markets. Among the most pressing concerns are insider-assisted account takeovers, identity farming, and AI-generated forgeries, which pose a growing risk to FinTech platforms with weak KYC protocols.
The report highlights significant regional variations in fraud tactics:
East Africa: The region recorded the highest rate of document fraud, with a 27% rejection rate in 2024, driven by a heavy reliance on official documents for identity verification.
West Africa: Identified as the epicenter of biometric fraud, the region saw a surge in face-match inconsistencies and AI-driven spoofing attempts.
Central Africa: Experienced a 3% increase in fraud rejection rates, now standing at 22%, indicating rising fraud sophistication.
Southern Africa: Saw fraud rates jump from 9% to 21%, largely due to exploitation of outdated identity documents like the retiring green book.
Mark Straub, CEO of Smile ID, emphasised the need for continuous innovation to stay ahead of fraudsters: “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 manual processes.”
Straub warned that FinTech platforms with weak KYC protocols remain the most vulnerable, as cybercriminals exploit identity farming to create fraudulent accounts and launder illicit funds. He called for stronger collaboration between industries, governments, and technology providers to build a safer digital ecosystem.
As fraudsters continue to exploit emerging technologies, Smile ID’s latest findings serve as a wake-up call for African FinTechs and businesses to fortify their digital security strategies and protect against the next wave of financial crime.
Key Takeaways:
With AI transforming both fraud and fraud prevention, African businesses must remain vigilant and stay ahead in the digital security race before fraudsters outpace the system once again.
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