Cybercrime losses across Africa have more than doubled within a year, rising from $192 million to $484 million, according to Microsoft’s newly released 2025 Digital Defence Report.
The report, unveiled on Wednesday, paints a troubling picture of a continent increasingly targeted by sophisticated cybercriminal networks and state-backed hackers leveraging artificial intelligence (AI) to enhance their attacks. Drawing on more than 100 trillion daily security signals from its global intelligence network, Microsoft said Africa is facing one of the most dynamic and evolving cyberthreat landscapes in the world.
The company warned that cybercriminals are expanding their reach, refining their techniques, and using AI to tailor attacks to local languages and cultural nuances. North African countries, it added, are now among the fastest-growing hotspots for digital threats.
“Africa isn’t just a target; it has become a proving ground for the latest cyber threats,” said Kerissa Varma, Microsoft’s Chief Security Advisor for Africa. “We’re witnessing attackers harness AI to craft phishing messages, impersonate trusted individuals, and exploit the very platforms we depend on.”
According to Microsoft, 80 per cent of the cyber incidents it investigated last year were driven by data theft for financial gain rather than espionage. This finding aligns with the World Economic Forum’s 2025 Cybercrime Impact Atlas, which reported a sharp rise in both the volume and value of cyberattacks across Africa, with victims increasing from 35,000 to 87,000.
While arrests of cybercriminals have grown across 19 African countries, Microsoft said the overall impact of cybercrime continues to escalate, underscoring persistent weaknesses in regional cybersecurity capacity.
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The report identified Business Email Compromise (BEC) as the most financially damaging form of cybercrime on the continent. Although BEC accounted for only two per cent of observed attacks, it was responsible for 21 per cent of successful breaches, surpassing ransomware at 16 per cent. These attacks often begin with phishing or password spraying before progressing to multi-factor authentication tampering and email hijacking. Once inside corporate systems, attackers exploit established trust relationships to redirect payments or steal credentials.
Microsoft’s research highlighted South Africa as a global hotspot for BEC infrastructure and money mule recruitment. It cited the example of Storm-2126, a Nigerian-origin cybercrime group operating from South Africa since 2017, which has orchestrated cross-border BEC schemes targeting U.S. real estate and manufacturing firms.
The report also warned that artificial intelligence is transforming the cyberthreat landscape. Criminals now use AI to automate reconnaissance, craft persuasive phishing lures, and deploy self-learning malware capable of spreading across systems without human intervention. Microsoft found that AI-enhanced phishing campaigns achieve a 54 per cent click-through rate—4.5 times higher than traditional methods—potentially increasing profitability up to 50-fold.
The proliferation of AI-generated content, including deepfakes, synthetic identities, and voice cloning, has also overwhelmed detection systems. Microsoft recorded a 195 per cent global increase in the use of AI-generated identities to bypass verification systems and launch attacks from disposable cloud accounts.
“This is a pivotal moment for African business leaders,” Varma said. “Relying on trust alone is no longer enough; familiar platforms and tools can be turned against us. Early warning signs like credential theft should be treated as indicators of larger breaches.”
Microsoft called for African organisations to adopt AI-powered defences, strengthen governance frameworks, and invest in proactive cybersecurity strategies. The company stressed that as Africa’s digital economy grows—driven by cloud adoption, fintech expansion, and connected infrastructure—cyber resilience must grow with it.
Varma added that by building local expertise and comprehensive cybersecurity strategies, Africa can position itself as a global frontline in combating digital threats, creating stronger and more resilient digital ecosystems.
