The battle against identity fraud across African economies is showing starkly uneven results. Some countries are recording significant successes, while others face alarming increases in fraudulent activity. Experts attribute this divergence to differences in the pace of digital adoption, regulatory frameworks, and the emergence of sophisticated AI-driven fraud.
Several major African markets have seen notable reductions in fraud due to stronger anti-fraud measures and Anti-Money Laundering AML frameworks. In Nigeria, fraud rates fell by 54 year-over-year to 2.7, largely thanks to the enforcement of NIN-SIM linkage and ongoing cybercrime crackdowns, though its AML-related fraud remains the highest in Africa at 4. South Africa also reported a 31 drop in overall fraud, aided by robust AML/CFT measures and the implementation of biometric eKYC standards. Kenya and Algeria experienced declines of 42 and 60, respectively, benefiting from strengthened Know Your Customer KYC protocols in the banking and telecom sectors.
Conversely, some countries are experiencing rapid increases in fraud as digital adoption outpaces regulatory oversight. Mali saw fraud rates surge 131, driven by expanding mobile-money services and exploitation by cross-border fraud networks. Cote d'Ivoire and Senegal experienced increases of 51 and 28, fueled by AI-assisted scams such as romance fraud and crypto scams. Zambia recorded the continent's highest proportion of potentially fraudulent approved applicants at 37, signaling a concentrated risk within its financial ecosystem.
