Nairobi, Feb. 12 -- Attempts to fake East African identification documents during registration of online financial service firms surged to a record high last year as fraudsters turned to digital identity fraud to swindle such companies.

A report by Know-Your-Customer (KYC) authentication firm Smile ID reveals that at least 16 percent of IDs uploaded for registration by users of various online financial services in East Africa in 2023 were either fake or stolen.

The fraudsters are using multiple techniques, including manipulating government-issued IDs and using stolen ones to exploit weaknesses in the onboarding process of digital businesses, with the aim of stealing or irregularly benefitting financially from online firms, the report su...