A recent report by Sumsub, a global identity verification platform, has unveiled a dramatic shift in Africa’s fraud landscape. Although overall identity fraud rates declined slightly across the continent in Q1 2025, the report warns that synthetic identity fraud, driven by AI and digital forgery tools, is rising rapidly, replacing traditional scams like document forgery.

According to Sumsub’s Q1 2025 Identity Fraud Report, Africa’s average fraud rate dropped to 3.42%, down from 3.50% during the same quarter last year. However, this apparent improvement hides a deeper and more alarming trend: fraudsters are increasingly deploying AI-generated identities and falsified digital documents, making detection far more difficult.

A Changing Fraud Landscape

Sumsub’s VP of Sales for Africa, Hannes Bezuidenhout, explained the evolving threat:

“Africa’s fraud landscape is undergoing a seismic shift. Enhanced verification tools have decimated traditional document forgery, but criminals are adapting with synthetic IDs and AI-powered scams.”

This transformation reflects a broader global trend where fraud is evolving from basic forgery to sophisticated, tech-enabled deception. The report confirms that while forged passports and manipulated ID cards are becoming easier to detect and eliminate, synthetic identities—crafted using AI-generated data and fabricated digital trails—are much harder to identify.

Nigeria and Tanzania See Rising Fraud Rates

While the continental average fraud rate slightly decreased, countries like Tanzania and Nigeria experienced notable increases, signaling localized vulnerabilities.

• Tanzania: Fraud rate surged to 4.89%, a 10% year-on-year increase

• Nigeria: Fraud rate reached 4.44%, marking a 2.5% rise

In contrast, South Africa and Kenya recorded sharp declines in fraud:

• South Africa: Fraud dropped 26%

• Kenya: Decline of 15.5%

Interestingly, Nigeria’s overall increase was accompanied by a major decline in document forgery, which fell by nearly 80% due to stronger verification systems. South Africa experienced a similar trend with a 73% reduction in document forgery, while Kenya and Ghana posted drops of 45% and 50%, respectively.

These figures suggest that modern verification solutions are effectively targeting traditional document fraud, but simultaneously, more advanced types of fraud are on the rise.

Synthetic Identity Fraud Gains Ground

The most startling revelation in Sumsub’s report is the explosive growth of synthetic identity fraud, particularly in countries with previously lower exposure to these threats.

• South Africa: Synthetic document fraud rose by 480% year-on-year, though still remains below 0.3% of verification attempts.

• Tanzania: Accounts for over 2% of all verification attempts, up by 184%

• Nigeria: Grew by 192%, now making up 1.5% of verification attempts

Synthetic identity fraud typically involves the creation of fake identities using real and AI-generated information, which fraudsters then use to open accounts, access loans, or conduct illicit transactions. Because these personas do not match known fraudulent patterns or stolen identities, they are harder for traditional systems to flag.

Although Africa’s total synthetic fraud volumes are still in line with global averages, the rate of growth and sophistication is accelerating, according to Sumsub.

Financial Sector Hit Hardest

Sumsub’s findings also highlight how fraud trends vary by industry. While IT services, gaming platforms, and social media networks saw meaningful declines in fraud attempts, financial services—particularly banking and digital finance—experienced a rise.

Key takeaways include:

• Professional services and social platforms remain high-risk, with nearly 6% of verification attempts flagged as fraudulent in Q1 2025.

• Financial platforms are increasingly targeted by fraudsters exploiting weak verification systems, particularly those not equipped to detect synthetic identities.

This shift presents a serious threat to Africa’s rapidly growing fintech ecosystem, which is both an innovation hub and a target for cybercriminals.

Experts Call for Smarter Fraud Detection Tools

In response to the growing threat, Sumsub’s VP, Hannes Bezuidenhout, urged businesses to upgrade their identity verification infrastructure.

“Fraud prevention is now a race between innovation and adaptation. Businesses must invest in cutting-edge tools that secure their platforms while meeting regulatory standards.”

Bezuidenhout emphasized that detecting fraudulent documents is no longer sufficient. As synthetic identities proliferate, the focus must now be on identifying fabricated digital footprints, behavioral anomalies, and irregular data patterns.

This means implementing AI-powered detection systems, biometric checks, real-time behavioral analytics, and machine learning models that adapt to evolving fraud tactics.

The Way Forward for African Businesses

Africa’s digital economy is expanding rapidly, with fintech, e-commerce, and digital identity platforms playing central roles in financial inclusion and modernization. But this digital acceleration also increases the attack surface for fraudsters.

To stay ahead, African companies must:

• Invest in multi-layered fraud detection systems

• Train staff to understand modern fraud tactics

• Collaborate with global verification providers like Sumsub to adopt international best practices

• Balance user experience with strong security protocols, ensuring customer onboarding remains seamless but secure

Conclusion: A Critical Inflection Point

The Q1 2025 Identity Fraud Report by Sumsub underscores a critical inflection point in Africa’s fight against fraud. While traditional scams like document forgery are being defeated, they are being replaced by a new generation of AI-enabled threats that are faster, smarter, and more difficult to trace.

For businesses and regulators alike, the challenge now is not just to detect fraud, but to anticipate it—using technology to stay one step ahead in a game that is constantly evolving. As Africa deepens its digital transformation, ensuring that security keeps pace with innovation will determine whether the continent can sustainably harness its digital potential.