Africa’s top 4 countries with the highest scam losses in 2024

Scams are increasingly widespread across Africa, with millions falling victim each year as digital platforms expand. The rise of online transactions and digital services has opened new avenues for cybercriminals, leading to significant financial losses.

Fraudsters are taking advantage of unregulated payment systems, including peer-to-peer transfers, digital wallets, and cryptocurrencies, targeting individuals and businesses alike.

According to the Global State of Fraud and Identity Report, which highlighted that 80% of organisations worldwide experienced payment fraud in the past year, while 20% of global consumers reported being victims of such crimes.

The rise in fraud is driven by the digitalisation of financial services across the continent. As institutions embrace new technologies, vulnerabilities are exposed, leaving customers vulnerable to exploitation the report further stated.

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The average amount lost in each scam incident offers insight into the personal financial toll on victims. This figure reflects the substantial impact that fraud has on individuals, highlighting the need for stronger protection measures and greater awareness of digital risks. As technology evolves, so must efforts to safeguard against this growing threat.

Here are the Africa’s top 4 countries with the highest scam losses in 2024

1. South Africa – Average Loss: $800

South Africa leads Africa in scam losses, with an average loss of $800 per victim. The country’s advanced banking system and widespread use of digital payments make it a prime target for fraudsters. Scammers often exploit weaknesses in peer-to-peer payment systems, where funds can be transferred easily without much oversight. Email phishing is another common method, where people are tricked into giving away personal information or money by fake messages that look legitimate. Additionally, fake investment schemes have grown in popularity, targeting those looking for financial opportunities in a booming market.

The rise in the use of digital wallets and cryptocurrencies has also increased the attack surface for fraud. While these technologies provide convenience, they also create more opportunities for scammers to exploit. The losses experienced by South African citizens are not just financial; the emotional toll of being deceived can be significant, leaving people feeling vulnerable and betrayed.

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2. Egypt – Average Loss: $700

Egypt ranks second in Africa for scam losses, with victims reporting an average loss of $700 per scam. The surge in e-commerce has been a key factor in the rise of fraud in Egypt. As more people shop online and make payments through digital platforms, scammers have taken advantage of unregulated and insecure payment systems. Fake online stores, which deceive people into making purchases that never arrive, have become more common. Identity theft is another issue, with fraudsters stealing personal details to carry out fraudulent transactions.

The growing reliance on online services in Egypt has created a situation where many people are vulnerable to fraud. Although the country has made efforts to improve cybersecurity, the rapid growth of digital marketplaces has outpaced efforts to protect consumers. As scams continue to increase, many victims are left facing financial difficulties and damaged reputations as a result of identity theft.

Read also: Africa’s 10 riskiest countries for businesses

3. Nigeria – Average Loss: $425

Nigeria, Africa’s largest economy, ranks third with an average scam loss of $425. The rapid adoption of digital technologies in the country has led to a dramatic increase in online transactions, which has also opened the door for scammers. Phishing emails are a common method used by fraudsters in Nigeria, where individuals are tricked into disclosing sensitive information such as banking details and passwords. Fake investment schemes are also widespread, promising high returns that never materialise.

Another scam that has affected many Nigerians is fraudulent job offers. With a high unemployment rate, many people fall prey to fake recruitment agencies or companies offering non-existent positions. The loss of money in these scams may seem small compared to the numbers seen in South Africa or Egypt, but it is still a significant burden for many, especially in a country with a high poverty rate. The emotional distress caused by being deceived in such a way can also be long-lasting.

Read also: 25 least lawful nations and their GDP per capita

4. Kenya – Average Loss: $350

Kenya, known for its innovations in mobile money, such as M-Pesa, faces an average scam loss of $350. Mobile payments have made financial transactions more accessible for millions of people, but they have also provided a new avenue for fraudsters to exploit. One common scam involves fake SMS alerts, which are designed to look like legitimate messages from mobile service providers or banks. These alerts trick people into revealing personal information or making payments to fraudulent accounts.

Phishing attacks are another concern in Kenya, where cybercriminals use fake websites or emails to deceive individuals into sharing their financial details. Small businesses are also at risk, with scammers targeting them through fake offers and fraudulent deals. The widespread use of mobile money has revolutionised financial inclusion in Kenya, but it has also created opportunities for scammers to take advantage of people who are less familiar with the risks of digital fraud.