Smile ID’s 2025 Digital Identity Fraud in Africa Report, highlights critical fraud trends across the continent, revealing that southern Africa’s rejection rates rose significantly from 9% in 2023 to 21% in 2024.
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 uncovered sophisticated fraud tactics exploiting vulnerabilities in fintech platforms and digital ecosystems, accelerated by emerging technologies such as generative AI (GenAI), deepfakes, and insider-assisted schemes.
Document fraud remains one of the most persistent forms of identity fraud in Africa, evolving with advancements in technology and increased reliance on digital verification.
In South Africa, the transition from traditional Green Book IDs to Smart ID cards is gaining momentum, with the latter offering enhanced security features to combat identity fraud. Fraud rates for Green Books in March 2024 were 500% higher than for Smart IDs, validating the shift to more secure identification systems.
While progress is underway, the findings emphasise accelerating digital ID adoption to mitigate vulnerabilities.
Across the continent, 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.
A survey of fraud professionals from nine leading South African banks identified APP fraud and vishing [52%], phishing and SMS scams [48%], and SIM swap fraud [35%] as the most pressing threats.
Key findings from the 2025 Digital Identity Fraud in Africa report also include:
- East Africa reported the highest rejection rate, at 27%, for combined biometric and document fraud in 2024, while West and Central Africa recorded 22%.
- Authentication attempts showed four times higher fraud rates compared to registration, indicating a significant rise in account takeover risks.
- Across all African regions, fraud rates peaked between 9PM and 5AM CAT, with attempts highest at 1AM CAT.
Mark Straub, CEO of Smile ID, comments: “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.”