Inquiring Minds Want to Know: What's the Most Prevalent Scam Wave Sweeping Across Africa Currently?
In the rapidly evolving digital landscape of Africa, the fight against fraud is becoming increasingly complex. According to Hannes Bezuindenhout, the VP of Sales in Southern Africa at Sumsub, businesses must stay ahead by adopting biometric verification, AI-powered fraud detection, and stronger multi-factor authentication.
One of the most concerning trends is SIM swap fraud, where criminals hijack phone numbers to gain access to bank accounts and mobile wallets. Fraud-detection engines in 2024 revealed a 16% biometric-fraud rate, highlighting the extent of identity-farming rings that exploit these schemes. To counteract this threat, AI-driven anomaly detection and dynamic liveness checks are being adopted to strengthen ID verification [2].
Scams on platforms like WhatsApp, Telegram, and social media are also on the rise. Fraudsters are impersonating banks, fintech companies, or trusted contacts to spread fake job offers, loan scams, and other forms of identity theft. The growing digital ecosystem in Africa is increasingly facing threats via these platforms, underscoring the need for robust multi-factor authentication and user awareness programs [1][3].
AI-powered fraud detection systems have become more advanced in 2025, enabling real-time identification of suspicious activities on mobile money gateways and other digital platforms. This is helping improve financial security as mobile money usage expands across Sub-Saharan Africa. Cloud-based security solutions and AI integration are becoming standards to protect users from evolving fraud techniques [1][3][4].
Fake job and loan scams are another worrying trend, exploiting the financial vulnerability of users engaging with digital financial services. Although direct statistics are sparse in the available data, their inclusion in fraud-prevention discussions at major summits in East Africa indicates growing recognition of the threat and the need for focused mitigation strategies [3].
Money mule networks are expanding, making it harder to trace illicit transactions. Fraud management systems emphasize combating account takeovers, money mule activity, and business email compromise (BEC) frauds. The market for financial crime and fraud management solutions is rapidly growing (projected to reach over $22 billion in 2025), reflecting increasing investment in technologies to address these sophisticated crime networks [4].
Regulatory action is also playing a crucial role in combating fraud. National data-protection laws, such as Nigeria’s 2023 Data Protection Act, have spurred organizations to strengthen security controls. Regional integration and regulatory harmonization are expected to ease cross-border fraud detection and compliance, reinforcing defenses against fraud trends ongoing into 2025 [2][1].
In addressing these challenges, initiatives like the Africa Fraud, Security & Compliance Summit are underlining a continent-wide drive to confront these growing threats. Sumsub has launched a bi-weekly Q&A series on Instagram and LinkedIn to answer frequently asked questions about regulatory compliance, verification, automated solutions, and more. New answers will be posted every other Thursday [5].
References:
- "The State of Digital Payments in Africa 2022" - McKinsey & Company
- "Fighting Fraud in Africa: The Role of AI and Biometrics" - Fintech Magazine
- "The Growing Threat of Digital Fraud in Africa" - African Banker Magazine
- "Market Analysis: Financial Crime and Fraud Management Solutions in Africa" - ResearchAndMarkets.com
- "Sumsub Launches Bi-Weekly Q&A Series on Instagram and LinkedIn" - Sumsub Press Release
In the dynamic African business and finance sector, the escalating threats of digital fraud require robust AI-driven solutions for real-time fraud detection on digital platforms, such as mobile money gateways and social media, to boost financial security. Simultaneously, regulatory action plays a critical role, with laws like Nigeria's 2023 Data Protection Act spurring organizations to strengthen security controls, leading to an increasing investment in technologies to combat these fraud threats.
