As digital transformation continues to sweep across Africa, many businesses are using new technologies to streamline their processes and improve customer experiences. 

However, this transformation has also led to a surge in fraud, from financial scams to identity theft, making it crucial for businesses to adopt robust fraud prevention solutions. In response to this growing threat, a number of startups have emerged in Africa, leveraging advanced technologies to fight fraud and keep users safe. In this post, we’ll discuss seven top fraud prevention startups across the continent.

Choosing the Right Identity and Fraud Prevention Partner: What to Look For

Before we dive into the list of top companies, it's essential to understand what to look for when selecting a partner for your business to avoid making mistakes.

Before choosing a fraud prevention partner, consider these key factors:

1. Compliance: Look for companies that adhere to local and international regulations.
2. Scalability: Choose a solution that can grow with your business needs and handle increasing transaction volumes.
3. Integration Capabilities: Check that the solution can seamlessly integrate with your existing systems and processes.
4. Multi-layered Approach: In some cases, companies that offer a comprehensive suite of tools, and combine various methods of verification and fraud detection are better for your business needs.
5. Local Expertise: Consider partners with a strong understanding of the African market and its unique challenges.

Learn more in our  free comprehensive guide to choosing the right verification partner

Now, let's look at some of the top identity and fraud prevention startups and companies making waves in Africa:

 1. Dojah

Dojah has become one of the key players in Africa's anti-fraud sector, offering a range of fraud detection tools and compliance solutions that help businesses verify identities, detect fraud, and remain compliant with local regulations. Leveraging artificial intelligence and machine learning, Dojah provides businesses with API-driven solutions that enable seamless customer onboarding, identity verification, and transaction monitoring, all tailored to meet the unique challenges of Africa's market.

Their product suite includes solutions such as Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance tools, real-time fraud detection, and enhanced onboarding processes for fintech companies. 
 

2. Smile Identity

Founded in 2017, Smile Identity has quickly become a leader in identity verification and KYC (Know Your Customer) solutions across Africa. With a presence in multiple African countries, Smile Identity offers a range of services including, Facial recognition and liveness detection, ID card verification, Document verification, and Anti-fraud tools.

Their cross-country compatibility and deep integration with various government identity databases give Smile Identity a competitive edge in the battle against fraud, making them a preferred partner for businesses looking to protect user data.

3. IdentityPass

IdentityPass offers a range of fraud prevention tools, primarily focusing on digital identity verification and authentication. Through the use of biometrics, facial recognition, and other verification tools, IdentityPass enables businesses to confirm the legitimacy of their customers, preventing fraudulent signups and transactions. IdentityPass’s technology is tailored to the African market, offering local ID verification, document verification, and API-based solutions to streamline the onboarding process for businesses.

IdentityPass focuses on improving security for fintech platforms and e-commerce, to mitigate risk and reduce fraud in real time.

4. TruID

TruID helps businesses prevent fraud by providing secure, verified access to a customer’s identity and financial information. The company specializes in enabling businesses to verify user identities and conduct financial checks in real time, helping prevent fraudulent activities such as account takeover or unauthorized credit applications. TruID’s focus on secure data transfer and in-depth verification allows businesses to authenticate customers and manage fraud risks efficiently.

By partnering with financial institutions, TruID also helps prevent identity-related financial crimes such as loan fraud, thus contributing to Africa's growing anti-fraud infrastructure.

5. Paystack Identity

While Paystack is primarily known for its payment gateway solutions, Paystack has expanded its offerings to include identity verification services. Paystack Identity provides BVN (Bank Verification Number) verification for Nigerian customers, Government ID verification and Phone number verification.

As one of the most popular payment processors in Nigeria and across Africa, Paystack's advantage lies in its integration with its widely-used payment platform, offering a seamless experience for businesses already using their services.
 

6. Youverify

Youverify, is a Nigerian startup founded in 2017 and has been making significant strides in the identity verification and background check space. The startup offers a range of verification services, including address verification, document verification, and biometric authentication. Their solutions help reduce the risk of fraud by ensuring that customers are who they say they are, minimizing the possibility of fraudsters accessing financial services or digital platforms under false identities. Youverify’s advanced verification processes make it a reliable partner for businesses in the banking, fintech, and e-commerce sectors, ensuring both compliance and security in high-risk environments.
 

7. ThisIsMe

Based in South Africa, ThisIsMe offers advanced identity verification solutions using a combination of biometrics, machine learning, and human expertise. Their services include KYC and AML compliance, Digital onboarding, Biometric verification and Document verification.

ThisIsMe stands out for its focus on regulatory compliance and its ability to verify identities across multiple African countries.

8. VerifyMe Nigeria

VerifyMe Nigeria is another prominent player in the Nigerian market, offering a wide range of identity verification and KYC services. Their solutions include Identity verification, Address verification, Employee background checks and Document verification.

VerifyMe's unique selling point is its extensive network of field agents, allowing for physical verification when needed.

Conclusion

As Africa's digital economy continues to grow, these startups are providing critical solutions that help businesses mitigate risks, secure transactions, and build customer trust. By partnering with the right provider, your business can protect itself and customers from fraud while facilitating smooth, secure transactions in the digital age.

To learn more on what your company needs to look out for when choosing a partner for your identity and fraud prevention needs, download our free guide here.