Kenya may be experiencing a surge in false identification cases | #daitngscams | #lovescams

Smile ID is a supplier of digital Know Your Customer (KYC) and identity verification services on the continent, committed to facilitating safe and easy digital interactions for organizations and people everywhere. Its purpose is to assist organizations in adhering to KYC rules, reducing risks, and fostering trust within the digital ecosystem.

35% of fraud incidents during the examined time resulted from selfie spoofs, in which con artists using stolen identification try to pass themselves off as the holders of the papers by utilizing a photo to mimic someone else.

About 55% of the cases were face mismatches, in which a legitimate ID number was supplied but the facial biometrics did not match the ID. About 11% of cases used fake identification. According to the the report from Smile ID, fraudulent onboarding efforts decreased generally throughout the continent during the study period compared to the prior year.

From a peak of 28% in 2022, the overall percentage of fraudulent KYC efforts that were successfully blocked dropped by five points to 23%. Smile ID notes that the fall in startup financing throughout the continent and the decline in fraud rates are related.

“Venture funding in Africa dipped by over 50 percent year-on-year in the first half of 2023. More so, the number of startups that received funding dropped from 303 in H1 2022 to 131 in H1 2023,” Smile ID says. “This decrease in funding has led to reduced marketing spend, especially incentive-based acquisition, which has been shown to have a high correlation with increased fraud attempt rates.”

The company does stress that businesses must continue to be attentive in battling fraud since attackers are always changing. “While referral fraud rates have dropped significantly, cybercriminals are still looking to exploit digital platforms to scam other users, or funnel illicit earnings,” the firm said.

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