In a concerning revelation, Nigeria and Ghana have emerged as the leading countries in West Africa grappling with the alarming issue of identity fraud. The 2024 Digital Identity Fraud in Africa Report, conducted by Smile ID, a prominent identity verification startup in West Africa, has shed light on the prevalence of identity fraud and its adverse impact on the region.
The report, spanning 63 pages, paints a troubling picture of identity fraud trends in West Africa. It highlights that most fraudulent documents have been exposed due to failed security features, indicating a significant presence of counterfeit ID documents in circulation. This unsettling discovery points towards the audacious exploration of weaknesses in the design of identity documents by fraudsters.
As digital and biometric ID verification methods gain widespread adoption across the African continent, identity fraud has emerged as a burgeoning problem that exacts a heavy toll on businesses, costing them millions annually. With an increasing number of financial transactions and commercial activities shifting online, the importance of robust identity verification mechanisms cannot be overstated. They play a pivotal role in curbing deception and criminal activities.
While the report acknowledges that the use of physical documents is less common in Nigeria, it underscores the higher fraud rate associated with Ghanaian ID documents. According to the findings, the most attacked ID documents in Nigeria include the National ID, with a 0.1% volume and an 18% fraud rate, and the Voter ID, with a 3% volume and a 12% fraud rate.
According to a report by The Guardian, the report spotlights the Ghanaian Social Security and National Insurance Trust (SSNIT) as having the highest fraud attempt rate, standing at 20%. However, it is worth noting that the SSNIT is an older ID document in the process of being phased out in favor of the newer Ghana card, which boasts advanced security features and a lower fraud rate.
In the East African region, the report reveals that four out of the top five most attacked ID documents are national IDs, with Kenya’s ID having the highest fraud rate in the region. Factors contributing to this alarming trend include the continued use of old National ID cards, characterized by black and white paper images laminated in plastic. The report also highlights Kenya’s government’s plans to invest in and consolidate existing ID systems in 2024.
Notably, Smile ID’s findings indicate that Nigeria’s National Identity Document ranks ninth in Africa as one of the most attacked documents by fraudsters seeking to clone IDs. The report underscores the surge in attacks on National ID cards across African countries in recent years. South Africa’s National ID topped the list in 2023, with a staggering 34% attempted fraud rate, followed by Tanzania’s National ID at 32% and Kenya’s National ID at 26%. Nigeria recorded an 18% attempted fraud rate, securing the ninth position.
Addressing fraud prevention, the report emphasizes that while regulatory compliance forms the foundation, it should be viewed as a minimum requirement. Businesses are urged to go above and beyond regulatory mandates to safeguard the integrity of their products and services. The battle against identity fraud calls for a multifaceted approach, combining regulatory adherence, robust security measures, and ongoing vigilance.
The 2024 Digital Identity Fraud in Africa Report serves as a wake-up call for West Africa, where Nigeria and Ghana must grapple with the pressing issue of identity fraud. The report underscores the urgency of enhancing fraud prevention measures and fortifying identity verification systems to protect individuals, businesses, and the broader economy from the pernicious effects of identity fraud.
