A new report from global verification platform, Sumsub, has revealed that traditional scams such as document forgery continue to decline in Africa while synthetic identity fraud powered by AI and digital forgery tools gains ground.
Sumsub, in its Q1 2025 Identity Fraud Report, disclosed that the continent’s overall fraud rate dipped slightly to 3.42%, down from 3.50% in the same period last year. However, this modest drop masks a deeper shift in criminal tactics.
“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,” said Sumsub’s VP of Sales for Africa, Hannes Bezuidenhout.
Tanzania, Nigeria record higher fraud rates
Despite the continental decline, Tanzania and Nigeria reported year-on-year increases in overall fraud rates, recording 4.89% and 4.44% respectively.
- Tanzania’s fraud rate surged nearly 10%, while Nigeria’s rose by 2.5%. In contrast, South Africa saw a significant 26% reduction, and Kenya posted a 15.5% drop.
- Meanwhile, Nigeria’s fraud numbers paint a mixed picture. While the total fraud rate ticked up, document forgery dropped sharply by nearly 80%, thanks to improved verification systems.
- South Africa saw a similar trend, with document forgery falling by more than 73%. Kenya and Ghana also recorded major declines in document fraud—45% and 50%, respectively.
Rise of synthetic identity fraud
While traditional forgery is falling out of favour, synthetic identity fraud, which involves the use of AI-generated credentials and fabricated documents, is rapidly growing in certain markets.
According to the report, synthetic document fraud remains below 0.3% in South Africa but grew by a staggering 480% year-on-year.
In Tanzania, the fraud accounts for over 2% of all verification attempts, up 184%, while in Nigeria, there was a 192% increase, now representing 1.5% of verification attempts.
Sumsub noted that this rise is consistent with global trends, although Africa does not stand out from other regions in terms of total synthetic fraud volumes.
Financial services see more fraud
- Sumsub’s report also revealed how identity fraud is evolving across industries in Africa. While IT services, gaming, and social media platforms saw significant reductions, fraud in finance-related sectors increased.
- The data highlights that professional services and social platforms remain high-risk sectors, with nearly 6% of all verification attempts flagged as fraudulent in Q1 2025.
- Bezuidenhout stressed that the evolution of fraud tactics demands an urgent upgrade in how businesses manage digital identity and compliance.
“The data proves that 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,” he said.
With fraudsters increasingly leveraging synthetic identities, experts say the focus must shift from detecting fake documents to recognizing fabricated digital personas.
