• Nearly 69% of biometric fraud targeting African fintechs now involves AI tools.
• Criminal networks are shifting attacks from account creation to account access.
• Experts warn rising fraud could threaten progress in financial inclusion.

Nearly 69% of biometric fraud attempts targeting African fintech platforms are now generated using artificial intelligence, according to a new report by identity verification company Smile ID. The study highlights a major shift in how criminal networks operate within the continent’s digital economy.

Titled Digital Identity Fraud in Africa 2026, the report analyzes more than 200 million identity verification checks carried out in 2025 across 35 African countries. The findings draw from a database of more than 400 million identity checks accumulated since 2019.

The report shows that fraud is increasingly focused on existing accounts rather than the creation of fake profiles.

For years, fintech platforms concentrated their security systems on the account registration stage. New users were typically required to present an identity document and submit a selfie to verify their identity. But fraudsters have now shifted their focus to key moments when users access their accounts, such as login attempts, password resets, or device changes.

According to Smile ID, these account takeover attempts are now five times more common than fraud linked to account registration. Security controls at these stages are often less strict, creating opportunities for cybercriminals.

The study also highlights the rise of organized networks capable of launching large-scale attacks. In one case observed in 2025, a group of fraudsters reportedly used around 100 stolen biometric identities to carry out more than 160,000 verification attempts in a single month across several African fintech platforms.

Some identities were used more than 12,000 times in access attempts, pointing to systematic reuse of stolen biometric data. For Smile ID researchers, these patterns suggest the emergence of real “supply chains” for digital identities, fed by hacked databases or credentials collected from underground markets.

A growing risk for financial inclusion

Artificial intelligence now plays a central role in these operations. The report estimates that 69% of biometric fraud cases detected in 2025 involved AI technologies, including deepfakes, synthetic faces, or automated facial manipulation.

These tools allow fraudsters to produce convincing digital identities at very low cost and to repeatedly test security systems until a vulnerability is found.

The pressure is particularly visible in West Africa, where fraud attempts in retail banking rose by about 50% in 2025, mainly during login attempts or account recovery operations.

For experts, the trend raises a major challenge for the future of digital finance in Africa. Over the past decade, the share of adults with a financial account has increased from 34% to nearly 60%, representing more than 200 million new accounts.

But that progress could be weakened if user trust declines.

Mark Straub, chief executive of Smile ID, warned that if people begin to see cash or informal financial channels as safer, the progress made in financial inclusion could be reversed.

Fiacre E. Kakpo