African Countries with Highest Scam Losses

Data from the report revealed that the acceleration of digital transformation in many financial institutions across the continent has also affected the vulnerability of customers to fraudulent attacks, leading to significant financial losses for individuals and businesses.

The report noted that 80% of organizations across the world were targeted through payment fraud attacks in the past year.

In Africa fraudsters have been intensifying their efforts to exploit regions with less-secured payment infrastructures. Furthermore, 20% of customers across the world report having been victimized by payment fraud.

Let’s now look at the four African countries with the highest average losses to scams, and the factors driving these trends.

The average amount lost to scams per individual represents the average amount of money that a single person loses in a single scam incident. This figure provides an idea of the financial impact on an individual level rather than on a national scale.

South Africa tops the list with a staggering $800 average loss per scam – the highest in Africa. The country’s sophisticated banking and payment systems make it a lucrative target for cybercriminals. Scammers frequently exploit vulnerabilities in peer-to-peer payments, email phishing, and fake investment schemes. The increase in digital wallets and cryptocurrency usage has also expanded the attack surface for fraud.

Egypt, ranked second on the list, records an average scam loss of $700. According to the report, the rise of e-commerce in the region has led to a rise in threats by fraudsters to take advantage of unregulated marketplaces and unsecure payment platforms. Scams involving fake online stores and identity theft have surged in recent years.

Nigeria, often regarded as Africa’s largest economy, reports an average loss of $425 per scam. According to the report, the rapid adoption of digital technologies and a high number of online transactions have equally led to a rise in fraud and financial vulnerability for customers, making it the third on the list. Popular scams include phishing emails, fake investment schemes, and fraudulent job offers.

Kenya, often praised for leading in innovation in mobile money through platforms like M-Pesa, faces an average loss of $350 per scam. According to the report, mobile payments have revolutionized financial inclusion and opened the door to fraudsters. Popular scams in Kenya include fake SMS alerts and phishing attacks, targeting both individuals and small businesses.

As institutions struggle to adapt quickly, fraudsters will keep exploiting any security lapses. By 2028, the total worldwide instant payment transactions are expected to grow to $58 trillion, a 161% surge over the next four years. However, the rate of human-initiated attacks has increased by 43% over the last two years and is expected to surge in the next few years.

For consumers to fight back, the report urges financial institutions to educate consumers about emerging threats and the importance of security measures to protect themselves from fraudulent threats. “They can play a role in fighting back if they’re made aware of what to look for and what to do.”