As Britons begin their Christmas shopping, a stark warning has been issued about a dramatic surge in card fraud. Data from leading firms reveals that fraudulent activity traditionally spikes during the months of November and December, with criminals capitalising on increased consumer spending.
The Alarming Rise of AI-Powered Fraud
According to data company Experian and fraud prevention service Cifas, a new and sophisticated threat is supercharging criminal efforts: artificial intelligence. AI technology allows criminals to rapidly generate synthetic identities by blending real and fabricated personal information.
This malicious use of technology makes it significantly easier for fraudsters to launch large-scale attacks on businesses. It also enables them to produce highly convincing fake documents, such as passports, which makes fraudulent applications much harder for companies to detect. The report highlights that fraudulent savings account openings are also on the rise, largely driven by these AI-generated identities, which are used to house stolen or laundered money.
Account Takeover Fraud Reaches Critical Levels
The scale of the problem is already staggering. Cifas members reported more than 74,000 cases of account takeover fraud in 2024. This figure represents a shocking 76% increase compared to 2023. The trend shows no sign of slowing, with data for the first six months of 2025 alone already exceeding 38,000 cases.
This sharp increase underscores the critical importance for individuals to protect their personal information. Beyond account takeovers, the report warns that investment scams, social media fraud, and employee-targeted scams are becoming increasingly prominent.
Fighting Back with Advanced Technology
In response to this evolving threat, businesses are fortifying their defences. Paul Weathersby, Chief Product Officer for Identity and Fraud at Experian UK and Ireland, stated, “Fortunately, businesses are deploying increasingly sophisticated technology to identify and prevent fraud. By deploying a multi-layered approach incorporating biometric and behavioural technology, organisations can ensure their defences are fit-for-purpose.”
Mike Haley, Chief Executive at Cifas, emphasised the seasonal nature of the threat: “Fraud doesn’t take a holiday – in fact, the festive season often fuels it. As we unwrap Christmas fraud, increased spending, stretched resources, and seasonal staffing can create the perfect storm for criminals to exploit vulnerabilities at scale and commit a range of crimes – from identity fraud to account takeover. Fraud may be evolving, but so is our response.”
The collective message from experts is clear: while criminals are leveraging powerful new tools, the fight against fraud is also advancing, aiming to protect consumers during the busiest shopping period of the year.
