The rapid expansion of Africa’s fintech ecosystem is unlocking financial inclusion for millions. Mobile banking, digital payments, and online lending platforms have surged in adoption, with mobile financial service usage rising from 63% in 2023 to 85% in 2025, according to a new survey by KnowBe4 AFRICA. But as digital transactions become the norm, so do the threats facing users and businesses alike.
A growing wave of cybercrime — driven by increasingly sophisticated fraud techniques, artificial intelligence (AI)-enabled scams, and an underground economy of “fraud-as-a-service” — is shaking consumer trust in African fintech platforms. A staggering 58% of survey respondents reported being “very concerned” about cybercrime in 2025, compared to just 29% two years prior. The fear is well-founded: digital extortion, phishing, and AI-generated impersonation scams are escalating, with South Africa alone losing $3 billion to online banking and mobile fraud in 2023, according to the South African Banking Risk Information Centre.
Fraudsters have embraced AI tools to execute highly convincing scams, from deepfake voice impersonation to automated phishing attacks that mimic legitimate financial institutions. The survey found that 53% of respondents did not understand what ransomware was, despite ransomware incidents becoming more frequent across the continent.
Meanwhile, social engineering tactics — where cybercriminals manipulate individuals into divulging sensitive information — are becoming more sophisticated. AI-powered chatbots are being deployed by scammers to carry out fraudulent schemes at scale, with little human intervention. “The latest scams are no longer just about poorly written phishing emails,” warns Anna Collard, SVP of Content Strategy at KnowBe4 AFRICA. “They are hyper-personalised, AI-driven and far more deceptive.
The shift toward mobile-first financial services has expanded the attack surface for cybercriminals. The survey revealed that smartphone penetration in Africa increased from 71% in 2023 to 75% in 2025. The number of users engaging with mobile financial services — whether for banking, payments, or both — jumped from 63% to 85% in just two years.
“The rise in mobile banking and payments is a double-edged sword,” explains Collard. “On one hand, it is a win for financial inclusion. On the other, it means more people are at risk if cybersecurity awareness and protections do not keep pace.”
The risks are exacerbated by poor cybersecurity hygiene. The survey found that users are becoming more willing to share personal information online, often in exchange for small incentives. In 2023, 29% of respondents were “very unlikely” to give away personal data; by 2025, that number had nearly halved to just 14%. This willingness to trade privacy for convenience exposes users to identity theft, account takeovers, and financial fraud.
Geographically, some regions are more vulnerable than others. The survey found that users in Egypt (11%), Nigeria (10%), and Kenya (7%) were the most likely to share personal data, while South Africans were more cautious, with only 4% willing to do so.
Despite rising concerns over cybercrime, the survey uncovered a significant gap between perceived and actual cybersecurity preparedness. While 83% of respondents expressed confidence in their ability to detect a security threat, 35% admitted to having lost money due to a scam. Additionally, 32% reported falling victim to phishing emails, up from 26% in 2023.
The overconfidence issue is particularly concerning for fintech firms. Many users believe they can spot fraudulent activities, yet they continue to fall for increasingly sophisticated scams. “This false sense of security is dangerous,” says Collard. “It leads to complacency, making people — and the platforms they use — more vulnerable.”
Amid growing threats, African fintech platforms are ramping up their security and fraud detection efforts. Some are integrating AI-driven fraud detection, biometric authentication, and behavioral analytics to detect and block suspicious transactions in real time.
Regulators across Africa are also stepping in. Nigeria’s Central Bank, for example, has imposed stricter Know Your Customer (KYC) requirements and mandated multi-factor authentication for online banking. South Africa is rolling out new cybersecurity frameworks to combat digital fraud, while Kenya’s regulators are increasing oversight of mobile lending apps.
However, cybersecurity experts caution that regulations alone are not enough. The real challenge lies in user education. “Technology can only do so much,” says Collard. “Without widespread cybersecurity awareness, even the best security measures can be bypassed through social engineering.”
For African fintech companies, this means investing in robust security infrastructure, AI-powered fraud detection, and real-time transaction monitoring. For regulators, it requires enforcing stricter cybersecurity standards and promoting cross-border cooperation to tackle international fraud networks.