Fraud reports in the UK reached a record high of 444,000 last year, driven by criminals using artificial intelligence to take over mobile, banking and online shopping accounts, according to Cifas, the UK's leading anti-fraud body. The figure represents a 6% increase on 2024, with AI enabling large-scale deception on an 'industrialised' level.
The Fraudscape report from Cifas reveals a shift towards account takeovers, where criminals use stolen data to gain control and make unauthorised transactions. Most reported cases involved mobiles, online shopping and personal credit cards. Cifas chief executive Mike Haley warned that fraud is becoming increasingly advanced and organised, operating seamlessly across borders.
Haley noted that criminals sell 'fraud as a service' kits, enabling others to commit crimes, and produce fake profiles on a large scale. 'Our assessment suggests that online fraud will become ever more sophisticated, supercharged by AI-powered impersonation, synthetic media and accessible fraud-as-a-service tools,' he said. Synthetic identities are becoming industrialised, blurring the lines between real users and AI-generated impostors.
There has also been a sharp rise in attempted sim-swap fraud, driven by the availability of compromised personal data. Most scams reported to Cifas were identity fraud, where data is stolen to impersonate victims and open new accounts. More than 22,000 cases of money muling were reported, where individuals allow their accounts to be used for criminal fund transfers.
Fraud now accounts for over 40% of all crime in the UK. A Barclays survey showed low consumer confidence in spotting AI-enabled scams, with only 36% believing they could do so. Cifas director of intelligence Stephen Dalton emphasised the need for cross-sector collaboration to spot patterns earlier as AI personalises attacks.
