African banks and telecommunications companies are struggling to contain a surge in financial fraud because weak coordination with law-enforcement agencies has created critical gaps that cybercriminals are increasingly exploiting, according to INTERPOL’s African Cyberthreat Assessment Report 2026.
The report warns that the absence of real-time data-sharing systems between banks, telecom operators and police forces has left financial institutions unable to respond quickly to fraudulent transactions, SIM-swap attacks and identity theft schemes.
While banks can often detect suspicious transfers, they frequently lack the legal authority or technical mechanisms to freeze accounts or prevent SIM swaps without court approval, a process that can take weeks or even months.
“The absence of real-time, inter-agency data sharing between banks, telecoms, and law enforcement created a dangerous blind spot,” the report said.
The security gap has emerged as one of the continent’s biggest vulnerabilities as digital banking and mobile-money services expand. Criminals increasingly exploit weaknesses in identity verification systems to gain control of victims’ phone numbers and financial accounts, often using social engineering techniques to deceive telecom customer-service representatives.
INTERPOL said the rapid growth of SIM-swap fraud illustrates the scale of the challenge. In Kenya, investigations into SIM-swap scams rose 327% in 2025, highlighting the fragility of telecom-based authentication systems that underpin much of Africa’s digital economy.
The report also points to the rise of artificial intelligence-generated identities, which combine stolen personal information with fabricated data to bypass biometric checks, open bank accounts, obtain mobile loans and register SIM cards under false names. Fraud hotspots shifted to Cameroon, Mali and Tanzania in 2025 as criminals exploited gaps in know-your-customer requirements, particularly in rural areas and informal financial systems.
Compounding the problem is the fragmented nature of Africa’s digital identity systems. According to INTERPOL, countries across the continent operate separate identification frameworks with incompatible standards, creating loopholes that organized crime groups can exploit across jurisdictions.
“The strategic vulnerability lies in the fragmentation of identity verification,” the report said, noting that no single interoperable and secure digital identity system exists across Africa.
The report warned that money muling, in which individuals unknowingly transfer illicit funds through their personal bank accounts, has become a growing concern. A 2025 survey cited by INTERPOL found that while nearly 77% of Africans exposed to fraud were aware of the practice, only 12% understood its legal consequences or recognized it as a criminal offense.
INTERPOL said stronger cooperation between banks, telecom companies and law-enforcement agencies, coupled with interoperable identity systems and faster data-sharing mechanisms, will be essential to closing the gaps that cybercriminals continue to exploit.
