Identity fraud has become an escalating concern for businesses in South Africa, with recent statistics painting a troubling picture. According to the Southern African Fraud Prevention Service (SAFPS), impersonation fraud surged by 356% between April 2022 and April 2023. Furthermore, a report by Smile ID revealed that national ID fraud constituted 27% of identity document fraud cases across Africa in 2024. This sharp increase underscores the growing sophistication of fraudsters who are leveraging advanced technologies to exploit vulnerabilities in identity verification systems.
The advent of generative artificial intelligence (AI) has further exacerbated the situation. Fraudsters now utilize AI to create hyper-realistic fake documents, voices, and images, facilitating identity impersonation and financial crimes. As a result, businesses across various sectors face heightened risks, including financial losses, reputational damage, and legal repercussions. Staying abreast of emerging fraud trends is imperative for organizations to implement robust authentication methods and safeguard their operations.
Emerging Trends to Watch Out For
As criminals continually adapt to technological advancements, fraud trends evolve in tandem. In 2024, several identity fraud trends emerged in South Africa, posing significant threats to businesses and expected to persist into 2025.
- Synthetic Identity Fraud
Synthetic identity fraud involves combining real and fabricated information to create new identities. Fraudsters use these synthetic identities to open fraudulent accounts, secure loans, or make purchases, often escaping detection due to the partial legitimacy of the information used. In 2024, synthetic identity scams increased by an alarming 153% in just one year. This trend poses a substantial risk to financial institutions and credit providers, as traditional verification methods may not effectively detect these fabricated identities. Consequently, businesses may suffer significant financial losses and damage to their reputations.
- AI-Driven Deepfakes
The rise of generative AI has enabled the creation of deepfakes—highly realistic fake audio and video recordings. Fraudsters use deepfakes to impersonate individuals, bypass biometric verification systems, and commit fraud. According to Smile ID’s 2025 Digital Identity Fraud in Africa Report, deepfake incidents increased sevenfold between the second and fourth quarters of 2024. This trend undermines the reliability of biometric authentication methods, necessitating the adoption of multi-layered security protocols to verify identities effectively.
- Insider-Assisted Fraud
Insider-assisted fraud involves employees or associates within an organization aiding external fraudsters by providing access to sensitive information or systems. This type of fraud is particularly insidious, as it exploits internal trust and can be challenging to detect. The 2025 Digital Identity Fraud in Africa Report highlighted insider-assisted account takeovers as a significant threat, with fraudsters collaborating with insiders to bypass security measures. Businesses must implement stringent internal controls and conduct regular audits to mitigate this risk.
- Mobile Payment Fraud
With the proliferation of mobile payment platforms, fraudsters have increasingly targeted these systems to exploit vulnerabilities. Techniques such as SIM swap fraud, where a fraudster takes control of a victim’s mobile number to intercept authentication messages, have become prevalent. In South Africa, the telecommunications sector experienced the highest rate of suspected digital fraud at 15.5% in 2024. This trend threatens not only financial losses but also erodes consumer trust in mobile payment solutions.
- Identity Farming
Identity farming refers to the systematic creation or acquisition of multiple identities, often used to facilitate layered money laundering operations. Fraudsters gather personal data—frequently from vulnerable populations—to establish fraudulent accounts that serve as conduits for illicit financial activities. This method complicates the tracking of illegal transactions and poses a significant challenge for regulatory compliance.
The Top Identity Fraud Tactics That Shaped 2024
In 2024, fraudsters employed various tactics to perpetrate identity fraud, compelling businesses to innovate and adapt their security measures.
- Phishing and Vishing Scams
Phishing (email scams) and vishing (voice call scams) remained prevalent, with fraudsters tricking individuals into revealing sensitive information. A survey of fraud professionals from nine leading South African banks identified phishing and SMS scams as pressing threats. Businesses responded by enhancing employee training and deploying advanced email filtering systems to detect and prevent such scams.
- SIM Swap Fraud
SIM swap fraud involves fraudsters taking control of a victim’s mobile number to intercept one-time passwords and authentication messages. This tactic was notably prevalent in the telecommunications sector, which experienced the highest rate of suspected digital fraud at 15.5% in 2024. Companies implemented stricter verification processes for SIM card replacements and encouraged customers to use app-based authenticators as countermeasures.
- Document Forgery
The creation of forged documents to bypass verification systems saw a significant uptick. Fraud rates for traditional Green Book IDs were 500% higher than for Smart IDs in March 2024, highlighting the need for more secure identification systems. Businesses began adopting advanced document verification technologies and advocating for the use of more secure identification methods.
- Account Takeovers
Account takeovers, where fraudsters gain unauthorized access to user accounts, surged by 250% from 2023 to 2024. This increase prompted businesses to implement multi-factor authentication and real-time monitoring to detect and mitigate suspicious activity. Fraudsters typically exploit weak passwords, phishing attacks, or stolen credentials purchased on the dark web to infiltrate accounts. Once inside, they can alter account details, make unauthorized transactions, or access sensitive business data.
Conclusion
Identity fraud remains one of the most pressing threats facing South African businesses today. As fraudsters continuously evolve their tactics—leveraging AI, deepfakes, and insider-assisted schemes—businesses must remain proactive in fortifying their security measures. Failing to address these threats can result in financial losses, reputational harm, regulatory fines, and operational disruptions.
To stay ahead of fraudsters, companies must prioritize robust identity verification solutions, multi-layered authentication processes, and ongoing fraud awareness training. Strengthening internal controls, regularly auditing security protocols, and leveraging advanced fraud detection technology can significantly reduce the risks associated with identity fraud.
How MarisIT Can Help You
MarisIT provides businesses with a powerful, user-friendly Web Services platform designed to combat identity fraud through comprehensive vetting and scoring checks. Whether you’re screening potential employees, clients, partners, or suppliers, MarisIT ensures that you make informed decisions backed by verified data.
With no fixed-term contracts, hidden costs, or renewals, MarisIT allows businesses to pay only for what they use, making fraud prevention both cost-effective and accessible. The platform is quick and easy to sign up for, ensuring that businesses can strengthen their identity verification processes without unnecessary complexity.
In an era where identity fraud continues to rise, partnering with MarisIT gives businesses the security and confidence they need to mitigate fraud risks effectively. Protect your business today—get started with MarisIT’s Web Services platform and stay one step ahead of fraudsters.
