A new report from Smile ID indicates that the proliferation of accessible AI tools is driving an unprecedented surge in biometric fraud across Africa, with fraudsters leveraging sophisticated technology to bypass digital financial security systems.
The study revealed that selfie anomalies constituted 34 percent of emerging biometric fraud cases, while deepfake-related fraud experienced a dramatic sevenfold increase from Q2 to Q4 of 2024. Biometric fraud attempts reached a three-year high with a quarterly average of 16 percent, with most fraudulent activities occurring between 10 PM and 6 AM EAT, peaking at 2 AM.
These findings align with global trends identified in a 2024 Deloitte survey, where 25.9 percent of executives reported deepfake incidents targeting financial data, and 52 percent anticipated increased attacks in the coming year.
Mark Straub, CEO of Smile ID, highlighted the critical vulnerability of fintech platforms with weak KYC protocols: “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.”
The report underscores the urgent need for collaboration between governments, fintech firms, and technology providers to combat these emerging threats. As AI tools become more sophisticated and accessible, the digital financial services sector faces increasing pressure to enhance its security measures and authentication protocols.
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