A shocking new report by SMILE ID, a leading identity solutions provider in Africa, has revealed that National ID frauds accounted for a staggering 27% of all identity document cases on the continent in 2024. This alarming trend is linked to the widespread use of National IDs as a primary form of identification.
Driver’s licenses followed closely, with a 24% fraud rate, driven by their frequent use in both formal and informal settings. Passports, often perceived as more secure due to stricter issuance protocols, showed a lower fraud rate of 20%. Work Permits and Alien Cards accounted for 19%, while Voter’s Identification cards had the lowest fraud rate at 14%.
The report highlights the diverse vulnerabilities across ID types, with National IDs remaining the most at risk due to their popularity.
While passports and other specialized documents like work permits have lower fraud rates, their misuse often involves high-stakes activities, such as international travel or employment fraud, with significant financial and reputational risks.
In response to rising fraud rates, several African countries are adopting digital ID systems to enhance security and strengthen identity verification.
South Africa, for example, is replacing its outdated Green ID Books with more secure Smart ID cards. Ethiopia’s National Identification Programme (NIDP), known as Fayda, has also made significant progress in providing secure digital identities using biometric technology.
However, despite these efforts, fraud cases involving generative AI are surging, allowing criminals to bypass traditional verification systems.
Fraudsters are now using AI to generate hyper-realistic fake documents, voices, and images, enabling them to impersonate individuals and commit financial crimes.
The report reveals a sevenfold increase in deep-fake related fraud incidents in Africa from Q2 to Q4 of 2024, as easily accessible AI tools lowered the barriers to creating fake identities and manipulating biometric data. Selfie anomalies, a key indicator of biometric fraud, accounted for 34% of emerging fraud cases.
Mark Straub, CEO of SMILE ID, notes that while AI has empowered fraudsters with sophisticated new tools, it can also be leveraged by security gatekeepers to harness global intelligence and strengthen fraud detection systems.
However, he warns that “fintech platforms with weak KYC protocols remain the most vulnerable, as these bad actors use identity farming to create fraudulent accounts that conceal the origins of illicit funds.”
The report also highlights significant regional variations in fraud methods across Africa in 2024. East Africa topped the list in document fraud cases, while West Africa emerged as the epicentre of biometric fraud.
Central Africa saw a rejection rate of 22%, up by 3% in 2023, while Southern Africa recorded a significant increase in fraud cases from 9% to 21%.
In the modern age, Africa still struggles with the rising tide of ID fraud, and it’s clear that a collaborative effort between industries, governments, and technology providers is needed to create a safer digital ecosystem.
