Digital fraud is becoming a major challenge for Africa’s financial services industry, with 88% of surveyed commercial banks and fintech companies reporting an increase in digital financial crime.
The finding comes from the sixth edition of the African Financial Industry Barometer, presented at the Africa Financial Summit (AFIS) in Luanda, Angola, on 3 and 4 November 2026. The study, published by Deloitte and Jeune Afrique Media Group, gathered responses from financial leaders across 20 African countries.
The results highlight the growing pressure on financial institutions to protect digital transactions, customer information and payment systems as financial services become increasingly technology-driven.
Digital Fraud Is Becoming More Widespread
The report found that 66% of all surveyed financial institutions experienced an increase in digital fraud. Among commercial banks and fintech companies, the figure rose to 88.
This points to a significant challenge for institutions that depend on mobile banking, digital wallets, online payment platforms and other electronic financial services.
As digital transactions become more common, financial institutions must address threats such as account takeovers, identity theft, phishing, social engineering, payment fraud and unauthorised access.
Cybersecurity Is a Major Operational Concern
Cybersecurity was identified as a leading operational concern by 51% of surveyed financial institutions.
The concern was particularly high among commercial banks, where 79% identified cybersecurity as a major risk. Among fintech companies, the figure stood at 63%.
These findings demonstrate how security has become a central business priority, not simply an IT responsibility. A successful attack can affect customer confidence, disrupt operations, expose sensitive information and create financial and regulatory consequences.
Artificial Intelligence Could Help Detect Fraud
Financial institutions increasingly recognise artificial intelligence as a useful tool for improving fraud detection and operational efficiency.
The barometer found that 85% of respondents recognised the impact of AI on fraud detection. However, adopting these technologies at scale remains difficult.
The main barriers include:
- Poor data quality, identified by 56% of respondents.
- Cybersecurity and data privacy concerns, also identified by 56%.
- Shortages of technical skills, reported by 44%.
- Regulatory uncertainty, cited by 33%.
AI-powered monitoring can help identify unusual transaction patterns and flag suspicious activities. However, these systems require reliable data, appropriate security controls, skilled personnel and effective oversight.
What Financial Institutions Should Do
The findings reinforce the need for financial institutions to strengthen their security strategies as digital services expand.
Important measures include:
1. Strengthen identity verification: Implement multi-factor authentication and stronger customer verification processes to reduce unauthorised account access.
2. Improve transaction monitoring: Use real-time monitoring and risk-based detection to identify suspicious transactions and unusual account activity.
3. Protect customer and business data: Apply encryption, access controls, regular security reviews and secure data-handling practices.
4. Conduct regular security assessments: Carry out vulnerability assessments, penetration testing and security audits to identify weaknesses before they are exploited.
5. Train employees and customers: Provide regular awareness training on phishing, social engineering, password security and safe digital banking practices.
6. Prepare for security incidents: Establish incident response procedures, backup strategies and recovery plans to minimise disruption when an attack occurs.
Security Must Keep Pace With Digital Finance
Africa's financial sector continues to expand its use of digital platforms and payment technologies. However, the latest findings show that the security measures protecting these services must develop at the same pace.
For banks, fintech companies and payment providers, cybersecurity investment is essential to protecting customers, maintaining trust and supporting the long-term growth of digital finance.
At Max-Tech I.T Solutions, we believe that effective cybersecurity begins with proactive protection, continuous monitoring and a strong security culture.
Businesses should not wait for a security incident before reviewing their systems and strengthening their defencies.
