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A new report spotlights deepfake fraud posing an acute problem for Africa.

Digital identity, banking and e-government are being used to streamline and more efficiently facilitate financial inclusion and disbursement of funding, along with helping underserved communities access healthcare and other essential public services.

Smile ID’s 2026 Digital Identity Fraud Report has some jaw-dropping findings. In Southern Africa, almost nine in ten (87 percent) rejected biometric verification attempts were connected to AI-assisted impersonation and spoofing. The report says “fraud is overwhelmingly biometric in Southern Africa,” a region that encompasses countries including Botswana, South Africa and Zimbabwe.

Meanwhile, Africa’s percentage of adults owning a financial account has risen from 34 percent to nearly 60 percent over the past decade. However, identity verification systems have largely stood still — tied to a one-time checkpoint model, Smile ID warns. Fraud has accelerated with the arrival of AI.

The figures were compiled from 200 million identity checks by Smile ID’s customer base across dozens of industries and 35 countries in 2025. The analysis covers the full identity lifecycle — onboarding, authentication, and high-risk account events — examining how fraud manifests at different stages of trust.

Smile ID found more than 160,000 fraudulent verification attempts in a single month in 2025, all of which were traced back to just 100 facial identities. “Some of these faces appeared over 12,000 times across multiple platforms,” the report says. Another case saw attackers use the same identity for more than a thousand account registration attempts within a space of 30 minutes.

“The most consequential fraud attacks today are targeted account takeovers (ATOs) — not fake IDs or isolated spoofs, but coordinated operations that compromise the capture pipeline, reuse real identities at scale, and exploit moments after approval when controls are lighter through highly scalable AI-powered tooling,” the reports claims.

This is a professionalized process with fraudsters coming in later in the customer journey, often colluding with insiders, and making use of large facial biometric and identity data sets. AI-powered tools are employed to analyze the data and to scale attacks. Generative AI has lowered the barriers to entry, reducing costs; creating high-quality synthetic documents and imagery while automating biometric manipulation, when this was previously uncommon or costly.

Now the cost of each try is marginal — approaching zero — attackers can reuse the same identity assets across hundreds of thousands attempts. Defenses built for a previous era are straining under the barrage. “Fraud defences must now assume abundance and use networked intelligence to spot patterns and turn the volume generated by fraudsters’ attacks against them,” the Smile ID report argues.

Smile ID discovered that nearly 90 percent of verifications rejected for suspected fraud in 2025 were found to be using mobile SDK integrations. This was up from 15 percent in 2023 and 65 percent in 2024. Mobile SDKs can capture additional on-device signals, such as image integrity and user behavior, that API-only verification flows cannot see. Biometric injection attacks have surged to over 100,000 per month, with Smile ID detecting the shadow of emulators, tampered capture and virtual cameras.

Continuously on defense and network intelligence

Mark Straub, CEO of Smile ID, comments that defense has to move beyond just the end of the pipeline. “Fraud is no longer a ‘KYC’ problem — it is a continuous cybersecurity challenge,” he says.

“Effective defence now requires network intelligence: By leveraging these privacy-preserving indicators throughout the customer lifecycle, we enable real-time adaptation. Identity has entered the security era, where eco-system wide protection is essential to safeguarding the individual,” he believes.

Modern fraud defense should operate across four interconnected zones, Smile ID argues, which form a continuous security infrastructure. These are trusted capture; verification and signal extraction; enforcement and feedback; intelligence and pattern detection, which all flow into another. Three strategic priorities build on this further.

Of these, priority two — harden authentication at high-value moments — is perhaps notable for its granular detail. For example, multi-factor authentication at high-risk moments, which in practical terms would mean requiring biometric verification in addition to OTP for password resets or device changes or high-value transactions.

The other two priorities are lifecycle intelligence, revealing where fraud will concentrate, and trusted capture, with capture integrity enabling richer signals. “Fraud now operates as repeatable, networked infrastructure,” the report concludes. “Defence must do the same.”

“This approach — a Network Defence — connects signals across the identity lifecycle, detects coordination that isolated systems miss, and strengthens with every verification.”

Smile ID’s 2026 Digital Identity Fraud in Africa Report can be downloaded here.