The UK's leading anti-fraud body, Cifas, has warned that criminals are increasingly using artificial intelligence tools to take over mobile, banking and online shopping accounts. Last year, a record 444,000 scams were reported to the national fraud database, a 6% increase on 2024, fuelled by AI-enabled large-scale deception.
According to Cifas's Fraudscape report, most account takeover scams involved mobiles, online shopping and personal credit cards. Criminals often sell 'fraud as a service' kits, enabling others to commit crimes, while AI-generated fake profiles are produced on an industrial scale.
Cifas chief executive Mike Haley said fraud is becoming more advanced and organised, operating seamlessly across borders. He noted that synthetic identities are becoming industrialised, with criminals building convincing long-term profiles that blur the lines between real users and AI-generated impostors.
There has been a sharp rise in sim-swap fraud, driven by compromised personal data. Identity fraud, where data is stolen to impersonate victims, accounted for most reports. Over 22,000 cases of money muling were also reported, where people allow their accounts to be used for criminal transfers.
Stephen Dalton, Cifas director of intelligence, anticipates more use of AI to personalise attacks and build credible profiles. A Barclays survey found only 36% of consumers are confident in spotting AI-enabled scams, despite fraud accounting for over 40% of all UK crime.
