Identity fraud spikes across Africa - Sumsub

Nigeria had the highest identity fraud rate in Africa in 2024, at 5.91%, followed by Algeria, Tanzania, Madagascar and Chad.

That's according to the Identity Fraud Report 2024 by Sumsub which found that the rest of the top ten African countries hit by identity fraud were Uganda, Niger, Cameroon, Kenya and Comoros.

Top 10 African countries with the highest percentage of fraud in 2024. (Source: Sumsub's Identity Fraud Report 2024)

The average year-over-year (YoY) fraud rate growth in Africa reached 167% this year, with Niger, Angola and South Africa leading the continent with identity fraud rate growth during the year of over 300%.  

All the African countries in the top 10 more than doubled their fraud rates during the year.

The researchers said that fraud has become increasingly cheaper to commit, with US$1,000 creating the potential for US$2.5 million in monthly business losses. The rise of "fraud as a service" (FaaS) models also allow fraudsters to outsource key aspects of their operations to specialized providers.

Top 10 African countries with the largest fraud growth, 2024 vs 2023. (Source: Sumsub's Identity Fraud Report 2024)

This was the fourth annual Identity Fraud Report from Sumsub, which is a global full-cycle verification platform. The report's analysis of identity fraud dynamics are based on millions of verification checks and over 3 million fraud attempts analyzed between 2023 and 2024.

The report also includes Sumsub's Fraud Exposure Survey 2024, featuring responses from over 200 risk professionals and over 1,000 end users.

Related:Cybersecurity: The big picture in Africa

Deepfake fraud grows

In 2024, deepfakes – which are manipulated images, videos, or voices used to impersonate individuals – have become commonplace according to the researchers, with their share among all detected fraud reaching 7% globally in 2024.

Africa showed an average deepfake fraud rate increase of 393% YoY, making it the second biggest regional spike after the Middle East which saw deepfake fraud increase by 643% YoY.

"In 2025, fraudsters will increasingly rely on artificial intelligence (AI) not just for deepfakes – which are, basically, just a tip of the iceberg – but for a broader range of deceptive tools, such as AI-generated identity documents, real-life videos, synthetic voices, and AI-driven chatbots that impersonate real users," explained Pavel Goldman-Kalaydin, head of AI and machine learning at Sumsub. 

"These innovations will make fraud harder to detect and more versatile," he added.

Countries with the highest fraud rates by region. (Source: Sumsub's Identity Fraud Report 2024)

In Africa, only 33% of consumer respondents to Sumsub's Fraud Exposure Survey 2024 experienced fraud attempts but 73% said they were worried about the influence of deepfakes on both current and future elections.

Around 70% of respondents said that a shared responsibility between businesses and governments is favored and 23% said weak passwords are the most common cause of account compromise.

Related:GSMA, SA operators partner on API services to fight mobile fraud

Cryptocurrency scams rife in Nigeria

"The growing use of cryptocurrency in Nigeria has provided fraudsters with new opportunities for fraud. Nigeria has one of the highest rates of cryptocurrency adoption in the world, especially due to its use as an alternative financial system in light of currency devaluation and limited access to foreign exchange," said Hannes Bezuidenhout, VP of business development for Africa at Sumsub.

"Fraudsters have taken advantage of this trend, launching cryptocurrency scam schemes, fake investment platforms, and fraudulent Initial Coin Offerings. The relative anonymity of cryptocurrency transactions makes it harder for authorities to trace fraudulent activities," Bezuidenhout added.

The report also highlighted one of the largest chargeback frauds in the fintech sector over the last year involving Nigerian company, Interswitch, which lost approximately $38 million.

"This scheme exploited vulnerabilities in Interswitch's system and is believed to involve both former and current employees," the report said.

Sumsub report's global findings include: 

"In today's digital world, identity fraud poses a serious threat to individuals and companies. In 2024, 67% of firms reported a fraud increase," said Andrew Sever, co-founder and CEO of Sumsub.