Telecommunications fraud is becoming an increasingly serious issue in Africa. It covers a broad range of activities involving the deliberate misuse of telecom networks to illegally obtain money from telecom operators or their customers. The telecommunications network itself becomes the attack surface where these fraudulent activities take place.
Reducing security threats amid technological advancements
Key players in the African telecommunications sector are well aware of the security threats, as is the case in other industries. According to an overview of the African telecommunications market, the continent’s young population has helped drive rapid change in the telecom sector, with a market value of approximately 63.17 billion USD in 2024. Experts predict the sector will continue to grow, reaching over 82.34 billion USD by 2029.
This anticipated growth depends on various factors related to technological advancements such as artificial intelligence (AI), machine learning (ML), and Big Data. As technology progresses and new digital transformation-driven innovations emerge, the risk factor becomes equally alarming. When all digital space actors adopt these new technologies, the attack surface continues to expand, making individuals, businesses, and organizations of all sizes more vulnerable.
Telecom fraud in Africa
According to Gavin Stewart, Vice President of Sales at telecom software provider Oculeus, « Telecom fraud is on the rise everywhere, but Africa has the unique conditions that make it more exposed to the growing threat of fraud ».
Termination rates in African countries are among the highest in the world, and the cost gap between international and domestic calls is often quite significant. Fraudsters frequently manipulate international traffic to appear as local or national calls, allowing them to benefit from cheaper rates.
Africa is also rife with smaller-scale frauds that quietly drain a subscriber’s credit, particularly given the continent’s heavy reliance on the prepaid subscription model. A classic example is the « double opt-in »fraud for value-added services (VAS), where the fraudster provides paid services (like sports news) without the subscriber’s consent. By the time the subscriber notices, their credit is already depleted.
Currency market instability in African countries also fuels fraudulent activities, as the ability to pay for services in local currency while earning revenue in foreign currency can open the door to scams. Africa is also a global pioneer in mobile money transactions, which has attracted complex new fraud schemes.
Telecom fraud and artificial intelligence
Stewart sees AI as both a tool that enhances fraudsters’ ability to operate effectively and a solution for telecom operators to better prevent fraud on their networks.
« At a certain level, AI enables fraudsters to outsmart traditional anti-fraud systems, which rely on detecting suspicious activity patterns. AI allows fraudsters to conceal these patterns and evade detection. Additionally, fraudsters now use AI to impersonate trusted entities such as banks, authorities, or loved ones more convincingly, employing advanced techniques like voice and visual mimicry», Stewart explained.
On the other hand, AI can automate early detection of new, emerging fraud patterns and strengthen defenses. Since fraudsters manipulate SIP (Session Initiation Protocol) protocols, real-time SIP-level protection is crucial. It is up to telecom operators to implement AI-driven technologies if they hope to successfully detect and mitigate AI-based fraud today.
