Fraud rises as Africa’s mobile money peaks

December is particularly busy, as families prepare for holidays, travel and back-to-school expenses

NEWS ANALYSIS | AGENCIES |  Africa’s mobile money industry is preparing for its busiest month of the year, with December transactions expected to push 2025’s total beyond the $81bn processed in 2024. But alongside the rise in festive-season remittances, cybersecurity experts are warning of a parallel surge in online fraud targeting millions of users who rely on mobile platforms to send money home.

Across the continent, mobile money has become deeply woven into daily life, transforming how people pay school fees, support relatives and run small businesses. In many regions, it has replaced traditional banking altogether, offering quick transfers and broad accessibility. Yet these same strengths have created fertile ground for criminals who are increasingly exploiting the rush and emotional urgency that accompany end-of-year spending.

December is particularly busy, as families prepare for holidays, travel and back-to-school expenses. This spike in activity makes users more vulnerable to scammers who disguise phishing attempts as festive promotions or urgent messages from service providers. Security analysts say phishing scams, SIM-swap attacks and social engineering tactics are now among the most common threats across Africa’s mobile payments networks.

“The festive season reveals both the strength and fragility of Africa’s mobile money ecosystem,” says Allan Juma, a cybersecurity engineer at ESET Africa. “Transfers spike, cross-border remittances surge, and that creates an environment that cybercriminals actively prepare for.”

Juma explains that while public trust in mobile money has deepened over the years, it remains highly sensitive to breaches. A single compromised account, he says, can deter entire communities from using digital services, reversing the gains made in financial inclusion. The sector’s growth, he argues, has not always been matched by improvements in system security or user awareness.

Key challenges

One of the key challenges is that many mobile money platforms still lack the robust protections common in traditional banking. Several services rely on simple PIN codes, which are relatively easy for fraudsters to intercept or manipulate—particularly through SIM-swap schemes. In such attacks, criminals gain control of a user’s phone number, allowing them to reset passwords and empty accounts within minutes. The absence of advanced authentication tools and limited use of encryption further expose millions of transactions to potential interception.

“Closing these security gaps can’t wait,” Juma says. “During this season, mobile money becomes Africa’s financial lifeline—people are paying for travel, sending school fees, supporting elderly relatives. Criminals know users are making quick decisions. Stronger authentication and AI-driven fraud detection can help spot anomalies before money leaves an account.”

Experts view

But experts stress that technology alone will not stop the growing wave of cybercrime. Consumer awareness, they say, remains the most immediate defence. Users are being urged to remain cautious, especially when confronted with unexpected calls, messages or promotional offers. Simple protective measures—such as enabling two-step verification, refusing to share PINs and reporting suspicious activity—can prevent many attacks.

Fraudsters often rely on urgency to push people into action, imitating relatives in distress or service providers requesting “immediate verification”. Pausing before responding, security professionals advise, is one of the most effective ways to block such schemes.

“Security can’t be an afterthought,” Juma adds. “Users and service providers both have roles to play. The festive season brings Africa’s mobile money ecosystem to its highest point of activity—and its highest point of vulnerability. Protecting that trust is a shared responsibility.”