According to the report prepared by Sumsub, identity fraud in Africa saw a significant increase in 2024.
The countries most affected by this issue were Nigeria, Madagascar, Chad, Algeria, and Tanzania. Nigeria ranked first on the identity fraud list with a rate of 5.91%.
Other countries facing significant challenges with identity fraud included Uganda, Cameroon, Kenya, Niger, and Comoros. The year-over-year increase in fraud across the continent reached 167%. In South Africa, Niger, and Angola, this rate peaked at 300%.
Additionally, manipulated images, videos, or voices, known as deepfakes, became more widespread this year. Deepfakes accounted for 7% of all fraud cases, showing a significant rise.
In Africa, deepfake fraud increased by 393%, making it the region with the second-highest increase globally, following the Middle East, which saw a 643% rise.
In Nigeria, cryptocurrency-related fraud also rose significantly. The country has a high rate of cryptocurrency adoption, and as a result, fraudsters are exploiting this trend. They are launching fake investment platforms and fraudulent coin offerings to carry out these scams.
According to Sumsub’s report, 50% of identity fraud is committed through forged documents, 15% through chargebacks, 12% through account takeovers, 7% through deepfakes, and 4% through fraudulent networks.
Some of the sectors most negatively affected by this rise in fraud include video gaming, online media, banking, and insurance. Businesses lost an average of $300,000 per fraud event.
