Nairobi — The increasing availability of free or low-cost Artificial Intelligence (AI) tools has significantly contributed to the rising cases of biometric fraud across Africa, according to a new report by Smile ID.
Biometric fraud exploits weaknesses in authentication systems that verify unique physical traits.
Fraudsters now have access to AI-driven tools that can generate lifelike fake documents, photos, and videos, enabling them to bypass security mechanisms in digital financial services.
The report highlights that selfie anomalies accounted for 34 percent of emerging biometric fraud cases, while deepfake-related fraud surged sevenfold from Q2 to Q4 of 2024, primarily targeting financial and accounting data.
Biometric fraud attempts in Africa reached a quarterly average of 16 percent, the highest in three years. The report also found that most fraudulent activities occur between 10PM and 6AM EAT, peaking at 2AM.
A 2024 global poll by Deloitte found that 25.9 percent of executives reported deepfake incidents targeting financial data, with 52 percent anticipating an increase in such attacks in the next year. Similar trends were observed in Africa.
Mark Straub, CEO of Smile ID, emphasized the need for a collaborative approach between governments, fintech firms, and technology providers to combat these vulnerabilities.
“Fintech platforms with weak KYC protocols remain the most vulnerable, as fraudsters use identity farming to create fake accounts that conceal illicit transactions. Addressing these challenges requires cross-sector cooperation to strengthen Africa’s digital security ecosystem,” Straub stated.
