By Paulo Nunes, Sales Manager Angola & Cape Verde | DataGroupIT
Africa’s digital economy is expanding rapidly, and with that growth comes a shift in how fraud is executed. This is not just an increase in attacks, but a change in focus. Fraud is no longer aimed at systems. It is increasingly targeting identity, and more specifically, mobile identity.
The reality is that many organisations are still securing identity for a desktop world, while their customers and attackers have already moved to mobile.
For organisations across banking, fintech and telecommunications, the mobile device has become the primary interface between business and customer. It is where transactions happen, where services are accessed, and where trust is established. That makes it one of the most valuable, and most exposed, assets in the digital ecosystem.
The Mobile Device as the New Identity Anchor
Across Africa, mobile is the foundation of digital access. The continent accounts for over 1.1 billion registered mobile money accounts, with Sub-Saharan Africa processing $1.1 trillion in mobile money transactions in 2024 alone, according to the GSMA State of the Industry Report on Mobile Money 2025. Africa processed roughly 74% of all mobile money transactions globally last year.
In many markets, the mobile device is not just the preferred channel, it is the only channel.
This has led to a fundamental shift. The device is no longer simply linked to identity. It has effectively become the identity itself.
A modern smartphone brings together multiple identity layers. Biometrics such as fingerprint and facial recognition sit alongside device-level attributes like SIM data and IMEI (International Mobile Equipment Identity, a unique identifier assigned to every mobile device). On top of that, there are behavioural signals, the subtle patterns in how a user types, swipes and interacts with applications.
Taken together, these create a far richer and more dynamic identity profile than traditional credentials ever could.
Fraud Is Following the Shift to Mobile
As activity has moved to mobile, so have attackers.
South Africa’s SABRIC Annual Crime Statistics for 2024 recorded digital banking crime surging 86% year-on-year, rising from 52,000 incidents in 2023 to nearly 98,000 reported cases, with total losses climbing 74% to R1.888 billion. Nigerian banks reported a 300% increase in SIM swap-related fraud cases between 2022 and 2024, according to data from the Nigeria Inter-Bank Settlement System. SIM swap fraud alone now accounts for around 60% of mobile banking fraud in South Africa, according to Comric’s 2025 Telecommunications Sector Report.
The pattern is clear. As mobile becomes the primary access point, it also becomes the primary target.
The Limits of Traditional Authentication
Many organisations still rely on passwords and one-time PINs. While familiar, these controls are increasingly misaligned with how fraud actually occurs today.
One-time passwords can be intercepted through SIM swap attacks or malware. Social engineering techniques are used to manipulate users directly, bypassing technical controls altogether.
In fast-growing digital markets, convenience often outweighs security design, which creates additional exposure.
The issue is not that these methods are obsolete, but that they are incomplete. They verify access at a single point in time, but they do not account for what happens during the session.
Behavioural Biometrics and Continuous Trust
This is where behavioural biometrics is gaining traction, including across African banking and fintech sectors.
Instead of verifying identity once, it continuously evaluates how users interact with their devices. The way someone types, holds their phone, navigates an app or performs transactions becomes part of their identity.
These patterns are extremely difficult to replicate and can be analysed in real time. When behaviour deviates from what is expected, it becomes a strong risk indicator.
Industry adoption shows that this approach can significantly improve fraud detection while maintaining a seamless user experience.
It represents a shift from static authentication to continuous trust.
Scale Is Changing the Risk Profile
Africa’s digital platforms are scaling rapidly. Fintech and telecom providers are onboarding millions of users, often across multiple regions.
At this scale, even a very small percentage of fraud can translate into significant financial loss.
Cybercrime is already estimated to cost Africa over 4 billion dollars annually, according to the African Cybersecurity Resource Centre. Kenya recorded 2.5 billion cyber threats in Q1 2025, a 202% increase from the previous quarter. South Africa’s telecom sector lost R5.3 billion to SIM swaps, identity theft and related fraud in 2024.
This changes how organisations need to think about fraud. It is no longer an exception to manage, but a constant risk to mitigate in real time.
From Authentication to Mobile Intelligence
What is emerging is a more adaptive approach to identity.
Organisations are moving beyond static credentials and combining device intelligence, behavioural analysis and AI-driven risk modelling to build a more complete picture of trust.
This allows for real-time decision-making based on context.
Low-risk interactions remain seamless. Higher-risk activity triggers additional verification or intervention.
The goal is not to eliminate friction, but to apply it intelligently.
A Defining Moment for Digital Trust
Mobile has become the gateway to Africa’s digital economy. It is also becoming the weakest point if not properly secured.
Trust has become a competitive differentiator. Customers expect secure, seamless experiences, and they are quick to disengage when that trust is compromised.
Organisations that recognise mobile identity as a strategic priority will be better positioned to scale securely and retain customer confidence.
Final Thought
In Africa’s emerging digital economy, the mobile device is no longer just a tool. It is the digital extension of our identity. Protecting it is a business survival strategy, no longer an IT task.