There is a revolution happening in Africa. Fintech platforms, e-commerce, e-governance, and mobile money are thriving on the continent. But as innovation gallops ahead, a shadow of evil rides along its path: identity theft, which emerged as the most dominant and life-threatening fraud trend in Africa.
Identity fraud, according to the African Cyber Threat Report (2024) by Interpol and the African Union, accounted for 63% of total reported digital financial crime in Africa and cost businesses and consumers over $4 billion in total losses.
The trend shows no sign of slowing down. From SIM swap frauds in Kenya to biometric spoofing in Nigeria. Cybercriminals are racing to take advantage of vulnerabilities in Africa's digital space.
This article analyzes the biggest fraud trend in Africa today, identity theft, its causes, implications, and how businesses are fighting back.
Identity Theft in Africa: How Stolen IDs Fuel Financial Fraud
Identity theft is where someone gets and uses another person's personal details, his or her name, date of birth, ID number, phone number, or biometric data, to pretend to be him or her for malicious reasons.
Identity theft in Africa is used for all of the following:
• Opening false bank accounts
• Getting digital loans
• Opening mobile wallets
• Making insurance claims
• Hijack social benefit payments
• Tamper with voter registration or licensing systems
And because of fewer verification procedures in Africa, attackers are getting through more and more.
Recommended read Digital Identity Verification in South Africa
4 Reasons Identity Theft Is Rising in Africa
1. Weak Digital ID Systems and Fragmented KYC Compliance
National ID systems in most African nations are incomplete or fragmented KYC compliant. Fewer than 70% of Africans possess a formal digital identity, across 13 countries, according to the World Bank's ID4D Initiative. This renders onboarding verification unreliable and easily tampered with.
Criminals exploit poor cross-platform ID authentication to open numerous accounts with the same stolen identity across fintech apps, telcos, and government agencies.
2. Data Breaches Exposing Millions of African Users
Data is the new oil—and cybercriminals are drilling deep. In 2023 alone:
• Nigeria experienced over 19,000,000 account data breaches from banks, telecoms, and government agencies in 2024.
• In South Africa, a credit bureau data breach exposed over 24 million individuals' personal details.
• In Ghana, cyberattackers infiltrate a voter database used by various third-party services.
These leaks enable fraudsters to have screen-checked personal data perfect for impersonation by these leaks. Africa had the world’s highest cyberattack rate in 2023, which prompted the urgent calls for stronger digital defenses.
3. SIM Swap Fraud in Kenya and Mobile Money Exploits
SIM swap fraud, where criminals hijack a user's mobile number by deceiving the telecoms into transferring it onto a new SIM card, is increasingly on the rise. Having the user's number, they can:
• By-pass two-factor authentication (2FA)
• Change banking passwords
• Access mobile wallets
Kenya's Communications Authority reported 16,000+ cases of SIM swap fraud in 2024, with 87% of identity fraud linked to telecom products.
4. Biometric Spoofing: How Deepfake Fraud Is Bypassing Africa’s ID Verification
Cyberthieves are taking advantage of AI-generated identity fraud in Africa, using deepfake videos, voice cloning, and AI-produced images to bypass facial recognition systems. In Nigeria, criminals are now using AI-manipulated passport photos to open fraudulent accounts and video selfie replays to bypass bank KYC checks. This identity verification gap costs businesses millions annually.
This game of hide-and-seek between fraud tools and verification instruments is compelling businesses to upgrade their KYC processes.
You can also read: The Growing Threat of Deepfakes and AI Generated IDs and How Businesses can Effectively Combat It
Real-World Cases of Identity Fraud in Africa
Nigeria: The BVN Abuse Crisis
The Nigeria Inter-Bank Settlement System (NIBSS) report indicates a worrisome increase in financial fraud across Nigeria, with Bank Verification Numbers (BVNs) being a prime target. In 2024, fraudsters exploited gaps in the system, with losses totaling ₦52.26 billion, a huge leap from the ₦11.6 billion lost just four years earlier.
South Africa: Grant Scam Network
With duplicated fingerprints and stolen ID numbers, criminals created forged social grant applications under fake identities. The South African Social Security Agency (SASSA) admitted to widespread fraud in the form of identity abuse.
Ghana: E-Wallet Hijacks
Thousands of Ghanaians complained that their mobile wallets were flushed out in 2025. Investigations blamed the fraud on SIM swapping schemes that were initiated by using stolen voter ID data and telecom credentials.
Impact of Identity Theft Across Industries
Identity theft is not a fintech problem. It reaches almost every digital touchpoint:
Banking & Fintech
E-commerce
Healthcare
Government
Telecom
And the reputational damage and compliance risk are staggering.
How Businesses Can Fight Identity Fraud
To fight identity fraud, African businesses must move beyond manual checking and basic ID uploads. Action steps are:
1. Multi-layered Identity Verification
Use a combination of:
• Government ID verification
• Live facial recognition with liveness detection
• Cross-device and geolocation verification
• Telecom data authentication
2. AI-Powered Fraud Detection
Install machine learning technology that analyzes behavioral patterns (e.g., typing speed, login history) to detect suspicious activity in real-time.
3. Secure User Onboarding
Restrict onboarding to devices that are authenticated, enforce stricter KYC requirements, and require biometric authentication for transactions of high value.
4. Regular Data Audits
Perform frequent audits to detect duplicate or fake accounts, and monitor for data irregularities.
5. User Education
Educate users regarding:
• Phishing techniques
• Prevention of SIM swapping
• Password best practices
• Reporting identity theft in a timely manner
Interesting read Identity Farming: A Guide to Fraud Prevention
How Youverify Is Leading the Fight Against Fraud in Africa
Youverify, a leading RegTech company, delivers cutting-edge end-to-end fraud prevention and compliance solutions. With seamless integrations across Nigeria, Kenya, Ghana, South Africa, and beyond, we empower businesses to detect, prevent, and respond to fraud in real time and also enable KYC and AML compliance automation
Impact: Customers enjoy up to 90% faster onboarding rates.
Conclusion
Identity theft is Africa’s fastest-growing fraud threat in 2025, posing serious risks to businesses, fintech, and government services. To safeguard Africa’s digital economy, organizations must make identity protection a strategic priority.
Fraud prevention and compliance solutions, such as Youverify, enable businesses to detect and prevent fraud in real time, securing customer identities while ensuring KYC/AML compliance. To get started, Book a demo with Youverify today.