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Identity VerificationTrends Report 2024

Insights from 220+ businesses | 14 industries | Millions of verification used to gather anonymous data | 900,000+ forged ID incidences studied |

Verification Demo 2024
Tobi Ololade, CEO Dojah

Tobi Ololade



As we navigate the evolving tech landscape in Africa, I am honored to introduce our latest endeavor: the Identity Verification Trends Report for the year 2024.

At Dojah, we're committed to creating a secure ecosystem for every African to access essential services. With a focus on identity infrastructure, we aim to address challenges in verification and fraud prevention. Having onboarded 15 million Africans on 500+ businesses, we recognise the dynamic tech landscape's growth and challenges. This outlook delves into the pulse of identity verification and fraud prevention, providing insights from our platform to guide stakeholders.

I invite you to explore this outlook and join us on our mission to build the identity infrastructure that enables Africans securely access business and personal interactions.


Adoption of Digital ID in Africa Too Early?

African governments are actively working towards universal ID coverage by replacing traditional systems with digital ID initiatives. However, the implementation has taken different turns in different countries reflecting the uneven level of digital transformation across Africa. The success of these initiatives is hinged on interoperability issues, fortifying data security measures, and ensuring a balanced pace of adoption across nations with differing levels of digital readiness.

Nigeria, Ghana, South Africa advance with transition to digital ID while Kenya, Uganda, Tanzania among others still explore their readiness.

Nearly 50% of Africa's population lacks legal identification.

85% of African countries have national ID systems with electronic databases.

Increased Integration of Biometrics

There is a growing adoption of liveness biometrics as an advanced authentication method for enhanced security and user experience. However, the prevalent use of email and SMS for authentication highlights the mobile-first nature of digital users, businesses are recognizing the need for more advanced and secure methods.

89% of businesses surveyed use eMail and SMS OTP authentication for post-sign up authentication.

10% of businesses use liveness authentication as a final method to check users after sign up.

Identity Fraud Still Booming

The surge in identity fraud, marked by sophisticated phishing and convincing deepfakes, has led to an alarming increase in both frequency and substantial financial losses.

Higher occurrence of fraud in Q3 and Q4, with Wednesday, Thursday, and Friday 10am -3pm accounting for the highest volume of verification requests.

Identity theft and phishing scams lead the way in identity fraud types on the continent, while deepfakes and AI-engineered fraud are on the rise.

The Nigerian voters' card was the most exploited ID type in fraudulent attempts, accounting for over 58% of forged identity cases in 2023.

Powering digital trust for companies across Africa

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Identity Verification Process Insights

More information about things to consider when choosing an identity verification vendor can be found in our ID Verification Checklist

Rationales for Using Identity Verification Services

Businesses deploy identity verification tools based on a mix of goals, with the significance of each rationale varying depending on the organisation's context, industry trends, and external factors. Specifically, businesses in the financial services sector are obligated by law to implement KYC and Identity Verification.

Fraud Prevention and Risk Mitigation: 35.7%

Meeting Regulatory Requirements: 40.2%

Facilitating Global Business Operations: 2.7%

Enhancing Customer Trust and Reputation: 8.1%

Streamlining Onboarding Processes: 13.3%

Verification Requirements Within Businesses (Nigeria)

Government ID Database is the most relied upon (source of truth) identity verification method, accounting for 98.9% of verification methods required by businesses.

Most Provided Government Identity Document by Users

2FA User Authentication

The widespread use of official government-issued identification documents indicates their perceived reliability and facilitates easy market expansion. OTP messaging is widely adopted for securing user accounts, aligns with user-friendly practices while maintaining reasonable security. Yet, there's a rising interest in enhanced authentication methods, particularly liveness biometrics.

Most Preferred user Authentication Channels

This implies that most users of digital products are mobile-first. However, this could contribute to more fraud getting through the crack. By incorporating biometric verification alongside messaging, businesses can better detect fraudulent activities, and protect their platforms and users.

Identity Verification Trends by Industry

Identity Verification Peak Periods

10 am - 3 pm on weekdays, majority of users undergo verification, with Wednesday, Thursday, and Friday experiencing the highest volume of verification requests.

Quarterly Figures

Q3 and Q4 show the highest upticks in identity verification requests. Similar trends were observed in 2022, with a noticeable increase in verification requests typically starting from August. These figures indicate that businesses onboard more users during this period, consequently leading to a higher occurrence of fraud attempts during the same timeframe.

Average Verification Pass Rates

80% of all verification requests on Dojah were successful

Monthly Verification Pass Rates

The majority of verification requests on Dojah are successful, with a notable concentration falling within the 70%-90% success rate range. Dojah successfully onboarded over 11m Africans to different services in 2023.

Fraud Trends by Industry

Most fraud/forged ID cases were recorded for businesses in financial services (71%) and then lending services (25%). Financial services businesses are the most targeted for fraud

Fraud Trends by Document (Nigeria)

ID cards are often the leading documents stolen or faked for fraud. The Nigerian voters' card emerges as the most frequently exploited ID type in fraudulent attempts, accounting for over 58% of cases involving identity fraud.

Fraud attempts using Nigerian Voters’ Card:58%

Fraud attempts using BVN:21%

Fraud attempts using NIN:12%

Fraud attempts using Int Passport:5.4%

Fraud attempts using Drivers License:2.5%

Top Identity Fraud Types 2023

Biometric Spoofing

Fraudsters use high-quality replicas of fingerprints, or facial features to trick biometric recognition systems. Based on insights from our internal fraud detection systems, 62% of thwarted identity fraud cases in 2023 involved attempts of liveness biometric spoofing.

Fake ID

Counterfeit documents using digital tools or acquiring fake IDs from illegal vendors for fraudulent activities, including opening bank accounts, applying for credit, or evading legal consequences is still prevalent. Notably, the Nigerian voters' card emerged as particularly susceptible to manipulation, constituting 58% of cases involving forged identification.

Voters ID

Voters' cards are widely distributed during election periods, making them relatively accessible compared to other forms of identification. Authentication features for the card might also be considered less stringent compared to other official Identity checks.

Account Takeovers

Fraudulent methods like phishing and social engineering contribute to the growing occurrence of scams via mobile and web apps among customers of financial service providers. we recommend augmenting 2FA with a liveness check to ensure complete protection at no expense to the user experience.

Multi Accounts (Identity Farming)

Multi-accounts (Identity Farming): Fraudsters, armed with personal details from various individuals, merge this information with fabricated data to generate new identities unrelated to real individuals. They then register multiple accounts to perform welcome bonus abuse, arbitrage betting, and other fraudulent activity. Multi-accounting is preventable with liveness checks.

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State of Identity Verification in Africa

The surge in identity fraud, marked by sophisticated phishing and convincing deepfakes, has led to an alarming increase in both frequency and substantial financial losses.

Nigeria ID Overview

At the core of Nigeria’s foundational digital identity scheme is the National Identity Number (NIN). As of 2023, Nigeria had enrolled more than 104 million citizens in its digital ID database as it works towards meeting the World Bank’s recommendation of enrolling 148 million people for digital ID by June 2024.

The Nigerian government also intends to merge banking and digital identity as commercial banks are expected to start issuing debit cards that can also serve as a national ID document.

Ghana ID Overview

The Ghana Card is a biometric smart card that holds citizens’ digital images, signatures, fingerprints and has a memory chip that can hold about 14 different ID register applications, including the ECOWAS e-passport, driver’s licenses and voter ID. As of February 2023, over 60% of the Ghanaian population had been registered for the Ghana Card.

Ghana plans to introduce a complementary digital version of its national ID card in 2024.

Kenya ID Overview

Kenya has been actively working on enhancing its identity verification systems; a second attempt at shifting from traditional to digital IDs—the Maisha Namba project which encompasses digital ID cards, unique personal identifiers, and a national population register due to launch in 2023—was shelved over data protection concerns.

  • The Government’s failure to run a risk assessment on the initial ID project led to the exclusion of communities. Similarly, there was the failure to conduct and make public a human rights impact assessment process for the Maisha Namba project.
  • The e-ID system seemed to lack a strong regulatory framework in place, thereby falling short of ensuring transparency, accountability, legitimacy of collecting data, as well as giving assurance to citizens about data protection and use for the country’s benefit.

South Africa ID Overview

South Africa is one of the few African countries taking active efforts to revamp its identification laws in order to create a regulatory basis for the digital ID management system. In 2023, the National Identification and Registration Bill was passed into law to establish a single, inclusive and integrated national identification system for South Africa applicable to citizens, residents and foreigners. The bill aims to:

  • Create a single database from the three major databases currently existing in the country—the national population register, the biometric National Identity System, and the Visa Adjudication System (VAS)—keeping records of foreigners and citizens alike.
  • Implement a reduction in the legal age required for obtaining a national ID card in the country from age 16 to age 10. This aims to help law enforcement clamp down on criminals who use young kids who don’t have IDs yet to commit crime, since nobody has their fingerprints.
  • Make a death certificate mandatory for all those who already have an established legal ID, whereby anyone who dies is issued a death certificate before they are buried—criminalizing and preventing anyone from being buried without a death certificate.
  • Provide for a gender-neutral number when it comes to gender.

Lessons to Note

The inaugural edition of the Dojah Identity Verification Trends in Africa Report revealed a growing awareness of the significance of data among individuals and businesses across the continent. Here are other key lessons:

Complexities of Fraud Prevention

Tech-enabled financial services fraud could be very costly and this cost has continued to rise amid a nuanced dance between banks, fintech companies, and regulators. Fintechs sharing fraud-prevention data, Nigerian regulators clamping down on unlicensed deposit-taking fintechs, and traditional banks restricting transactions to digital banks over KYC concerns highlight the intricate dynamics shaping the approach to combating fraud.

Mobile and computer/web fraud dominate as the most common channels, constituting 76% of the 24,232 cases reported in Nigeria during Q1 and Q2, 2023.

Fragmented Identity Infrastructure on the Continent Hampers on Growth

The simultaneous emergence of multiple digital ID initiatives, has potentially created inconsistencies and made interoperability of digital ID systems on the continent a challenge. The goal of achieving interoperable digital ID systems across Africa is motivated by the vision of establishing a secured Digital Single Market by 2030. However, the lack of interoperability in digital identity systems continues to impact the implementation and evolution of verification technologies to foster commercial growth across the landscape.

Cart Before the Horse?

In the fervor to implement digital ID systems across Africa, governments have often prioritized the development of biometric databases and digital identification without concurrently establishing essential data governance frameworks. As Africa progresses towards universal digital ID coverage, prioritizing the development of these frameworks is essential to build trust and ensure a secure and responsible digital environment.

Identity Verification Projections for 2024

Increased Use of Biometrics

Tech-enabled financial services fraud could be very costly and this cost has continued to rise amid a nuanced dance between banks, fintech companies, and regulators. Fintechs sharing fraud-prevention data, Nigerian regulators clamping down on unlicensed deposit-taking fintechs, and traditional banks restricting transactions to digital banks over KYC concerns highlight the intricate dynamics shaping the approach to combating fraud.

Try our easy Govt ID + Biometrics demo! This widget quickly confirms if your ID is real and belongs to you—all in just one minute.

Government-led Digital Identity Initiatives:

Despite recent setbacks we expect a continued adoption of digital identity initiatives in Africa. With financial inclusion being a major rationale we hope that governments in African countries implement robust frameworks that caters to inclusion and data protection of its citizens.

Introduction of Digital Identity Wallets

We expect to see the advent in usage of digital identity wallets on the continent, allowing individuals to securely store and manage their identity credentials, providing a more user-centric and convenient approach to identity verification and onboarding.

Real-time Safety with Transaction Monitoring

The growing complexity of the financial landscapes makes real-time transaction monitoring an indispensable need for companies aiming to proactively safeguard their assets, maintain customer trust, and navigate an sophisticated fraud tactics.

Learn how to stay one step ahead of fraud with our transaction monitoring tool—EasyDetect. Get our limited offer to monitor up to 10,000 transactions monthly for free.

Identity Fraud Forecast

AI and Deepfakes—the Double Edged Sword

Advances in technology are making AI and deepfake tools more accessible, reshaping the landscape of fraud and identity verification. The increasing use of generative AI amplifies the threat, empowering criminals to produce highly convincing fake video and voice content. Here’s what to expect with regard to AI and deepfakes in the context of identity verification.

AI-Driven Social Engineering

Integration of AI in social engineering attacks, where fraudsters leverage machine learning algorithms to craft more convincing and personalized phishing attempts. This could involve generating highly realistic messages or profiles to deceive individuals.

Emergence of Counter-Deepfake Technologies

Development and deployment of counter-deepfake technologies designed to specifically detect and mitigate the impact of deepfakes. This could involve the use of AI-driven algorithms to identify inconsistencies in media content.

Collaboration in the Tech Industry

Increased collaboration within the technology industry to develop standardized approaches for countering deepfake-related identity fraud. Companies may work together to share insights, research, and best practices in combating these evolving threats.

Discover comprehensive insights into identity verification through our resources, guiding you toward effective strategies to safeguard both yourself and your business.

Ready to Build Seamless Identity Verification?

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