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Biometric Fraud Triples To 15% In West Africa

Jerry Emmason by Jerry Emmason
2 years ago
in Business
internet fraud
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Smile ID has released its 2025 Digital Identity Fraud in Africa Report, revealing a sharp rise in biometric fraud across the continent.

West Africa saw the most significant increase, with biometric fraud attempts soaring to 15 per cent in 2024, three times higher than the under five per cent recorded in 2023.  The surge is attributed to growing reliance on biometric verification and the increasing sophistication of fraudsters exploiting security gaps.

Drawing from over 110 million identity verification checks across Central, East, West, and Southern Africa, the report highlights both progress and challenges in digital identity security.

While biometric verification has helped reduce overall fraud rates in Know Your Customer (KYC) processes to 25 per cent (down by four percentage points from 2023), criminals have responded with more advanced attack methods, leading to millions of dollars in fraud losses.

Notably, fraud losses in Nigerian banks alone surged to N42.6 billion in Q2 2024, far exceeding the N9.4 billion total recorded in 2023, according to FITC. Other key findings from the report revealed that  East Africa reported the highest biometric and document rejection rates at 27 per cent, followed by West and Central Africa (22 per cent) and Southern Africa (21 per cent).

Biometric fraud attempts averaged 16 percent per quarter, the highest recorded in three years. Authentication attempts had fraud rates four times higher than new account registrations, highlighting a growing risk of account takeovers.

Fraudulent activity peaked between 8 PM and 4 AM WAT, with the highest occurrences at midnight.

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Responding to the findings of the report, the CEO of Smile ID, Mark Straub, emphasised the need for adaptability in fraud prevention, warning that while AI enhances security, it also provides fraudsters with new attack methods.

“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,” Straub stated.

To combat these threats, Smile ID recently introduced Enhanced SmartSelfie™, a cutting-edge biometric verification tool designed to counter deepfakes, AI-generated faces, and replay attacks. By adopting advanced fraud detection solutions and cross-industry collaboration, African businesses can enhance security, build trust, and drive economic growth.

 

 

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