As fraud gets easier to commit, Africa's deepfake fraud is increasing at an alarming pace each year.

Deepfake technology is a type of artificial intelligence that generates realistic fake images, movies, and audio recordings.

Sumsub, an identity verification platform, released its fourth annual Identity Fraud Report, detailing the impact of swindling on the continent.

It describes how, due to increased accessibility of ever-cheaper fraud technology, Fraud-as-a-Service is becoming a significant threat to African companies, with identity fraud on the continent increasing at an alarming rate.

According to the report, Nigeria has the highest average fraud rate in Africa in 2024 among all verifications, having doubled from the previous year, followed by Algeria, Tanzania, Madagascar, and Chad.

The top five sectors most affected by identity fraud in 2024 are dating (8.9%), online media (7.7%), banking and insurance (2.7%), video gaming (2.3%), and cryptocurrency (2.2%).

Sumsub's analysis of the fraudster economy shows that, with as little as $1,000 at their disposal, swindlers can potentially cause losses of up to $2.5 million each month.

“In today’s digital world, identity fraud poses a serious threat to individuals and companies,” said Andrew Sever, co-founder and CEO of Sumsub.

He stated that this year, 67 percent of companies worldwide had recorded an increase in fraud.